Edinburgh joins Dubai as world property ‘hot spot’

The Capital's New Town is competing with Dubai among property investors looking for an opportunity. Picture: Getty
The Capital's New Town is competing with Dubai among property investors looking for an opportunity. Picture: Getty
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EDINBURGH is going head-to-head with the likes of New York, Boston, Sydney and Dubai after being named as an international property hot spot.

Investors are flocking in their droves to buy up New Town properties as their gaze turns from the saturated London market, according to a new report.

And now the Capital has made a debut appearance in property firm IP Global’s highly regarded barometer report, which specialises in spotting prime investment opportunities around the world.

The report, which lists the 12 best current investment destinations, reveals that Edinburgh has seen a 50 per cent rise in deals during the third quarter of 2013.

City-based firms have backed this up, with the Edinburgh Solicitors Property Centre (ESPC) reporting a house sales increase of more than 40 per cent year on year.

The IP Global report states: “The Edinburgh market is currently very active, with a 50 per cent rise in transactions across the city and investors able to enter the market at a low level.

“The New Town area suffers from a significant lack of supply that sees new properties being snapped up very quickly.”

Other up and coming investment destinations include Dubai, Chicago, New York, Boston and Seattle and the Australian cities of Melbourne, Sydney and Brisbane. Munich, Berlin and Tokyo fill out the list.

ESPC head of marketing Neil Harrison said: “It’s only to be expected that the Capital would be seen as an alternative to London by global investors, the market is quite resilient here.

“We have seen a 40 per cent increase in sales over the last year but in that time prices have remained stable. At present the level of supply is sufficient to keep house prices down. Of course, over time expansion is needed and new build houses will have to come into the market or prices will begin rising.”

Yesterday, the News revealed how property prices in Scotland are predicted to soar over the next five years as a record number of people cash in the equity on their homes to fund their retirement.

House prices are expected to rise by 18 per cent, adding £26,000 to the cost of an average house by 2018.

Estate agent Savills predicts house sales will jump around 12.5 per cent in the next year as a result of the Scottish Government’s Help to Buy Scheme.