For those of you wondering if an Edinburgh property investment is for you, we’ve compiled a list of the top five reasons to consider Scotland’s capital.
High student population
With four universities in Edinburgh, there is a large student population in the city, which means there is a high demand for residential property. There are around 60,000 students studying in Edinburgh, and they all need homes!
As one of the oldest universities in the English-speaking world and one of the global top 20 universities, The University of Edinburgh continues to attract students from all over the world to the city. Students like to stay in central properties near the main amenities and in groups of around three to five. Many seek out an ‘Edinburgh experience’ during their time here and prefer to stay in older more characterful properties – often with high ceilings and larger spaces for studying and socialising. These multi-bedroom period properties are often packed with original features in Victorian, Georgian and Edwardian tenements and make highly prized investment properties.
Affordable properties with high returns
Investment properties tend to range in price from circa £200,000 to £500,000 with consistently steady average rental returns typically between 5.0% - 7.0%. Over the years, Edinburgh has been home to the highest rents in Scotland with rents rising rapidly compared to the rest of the country – the average rent in the city is currently £984 per calendar month*.
Growing population
Thanks to Edinburgh’s growing tourism, technology and business industries, the city is enjoying a population boom with over 1.6 million people living within the city region. Experts have predicted that Edinburgh will become Scotland’s biggest city within the next couple of decades.
It’s not London
London is now mostly seen as too costly for many buy-to-let investors due to taxation. Experts have also predicted the potential for a market cooling in London this year, leading to many investors looking at other UK cities. Edinburgh currently has the strongest economy of any UK city outside London.
Brexit…
Whilst the UK is still seen as an attractive place for investment, the political uncertainties surrounding our departure from the EU means the pound has decreased in value. However, this gives overseas investors the opportunity to take advantage of better exchange rates.
So, if the above reasons for investing in Edinburgh sound interesting, why not get in touch or take a look at our current investment opportunities? To contact a member of our investment team, please call us on 0131 221 1818 or email steve@cullenproperty.com.
