Report highlights ‘significant rebound’ of Scotland’s prime residential market

NEW research from Savills has revealed a ‘significant rebound’ in Scotland’s prime residential market.

The firm’s latest research report also highlights the resilience and growth of the Glasgow market.

The prime residential market in Scotland experienced growth in 2024, driven by stable lending rates. Transactions for properties priced between £300,000 and £500,000 increased by 21%, while those above £500,000 saw a 23% uplift.

Despite an increase in available properties, prime Scotland prices showed resilience, with a drop of just -0.1% in Q4, 2024. The number of £500k+ available properties was 24% higher at the end of last year compared to 2023.

Edinburgh and Glasgow were said to have demonstrated ‘robust’ market activity, with Glasgow’s prime prices rising by 1.2%. ‘Hotspots’ such as Newton Mearns and Bearsden contributed significantly to this .

In Perthshire, prime prices were -3.8% lower in Q4, 2024 compared to the same period 12 months earlier, with the market facing challenges, especially above £750,000. However, Savills said demand for good quality rural homes remains strong.

In Angus and southern Kincardineshire, agreed sales from £350,000 to £500,000 increased by 56% in Q4, 2024 compared to the same period in 2023, although the market slowed towards the end of the year. Aberdeen saw stable house prices throughout 2024, with a consistent demand led by the AB15 postcode.

In terms of outlook, Savills revealed demand for family homes is expected to continue driving activity, with the company forecasting a 2.5% price growth for prime Scotland markets in 2025. Over the next five years, a 21.0 growth is anticipated, outperforming other prime regional markets.

Faisal Choudhry, director of Savills Residential Research, said, “Despite economic and taxation challenges, the underlying demand for family homes, especially in commutable areas with good schooling, will continue to support Scotland’s prime residential market.”