My latest analysis reveals the growing strength of the super prime residential market in Scotland. Indeed, Edinburgh saw its highest ever number of residential transactions at £1 million and above from January to December 2019 with 35 per cent more sales than the  previous high in 2007. With 196 sales, this represents a rise of 53 per cent compared with 2018. There were 287 sales at this level across Scotland as a whole, just three less than the all-time record of 2007.

And we are also seeing more sales at £2 million and above, with 31 transactions including eight over £3 million, with six of these being in Edinburgh. This compares with six at £2 million and above in 2018 when there were none over £3 million. 

Savills research reveals an increase in the number of Scottish super prime buyers, but also in the numbers buying from outside Scotland, including all over the UK as well from as far afield as Australia, Japan and the USA.

As a researcher, it is always interesting to see the trends play out. However, what is perhaps more interesting are the nuances behind the numbers. My colleague Cameron Ewer, Savills head of residential in Scotland, is now regularly talking to new buyers within this expanding market. They are telling him that quality of life, and value for money, supported by the exchange rate, and the Scottish residential market’s resilience in the face of political factors, seem to be the key to continuing demand within the super prime sector.

It is not just the castles, estates and fine Georgian townhouses that are attracting the attention of super prime buyers. Interestingly, market performance in 2019 was supported by a record 48 new build transactions, including CALA’s Riverside in Bothwell in Glasgow and two flagship Edinburgh developments marketed by Savills: CALA's The Crescent at Donaldson’s, located at the entrance to Edinburgh’s West End, and Miller Homes’ Suffolk Row in a prime position in the capital’s south side. 

Focusing on the particularly buoyant market in Edinburgh, Scotland’s capital has dominated the country's prime market in recent years, fuelled by an expanding economy and people moving here from outside Scotland. Price growth has also pushed many transactions into this price band, yet this city remains relatively affordable compared with other university cities in the UK. There is clearly more capacity for price growth in the city, underpinned by continuing economic and population expansion, with a surplus of motivated buyers.

The traditionally sought-after prime inner suburbs led the market in the capital, with £50 million plus sales taking place in the enclaves of the Grange, Morningside and Merchiston. The New Town, Stockbridge and Inverleith areas made a roaring comeback, with transactions almost doubling from a combined 28 in 2018 to 55 last year. Five took place on the charming Ann Street in Stockbridge, a record for this thoroughfare. Meanwhile, Murrayfield recorded 30 in 2019 and almost a half of them were new build.

Market strength has spread into the ever popular neighbouring East Lothian, with its attractive villages, golden beaches, award-winning golf courses and excellent commuter links to the city. In 2019 there were 18 recorded transactions, just two short of its 2007 total. While the majority took place in and around North Berwick, there were four in the commuter village of Inveresk just outside Edinburgh.

In the north-east, the Aberdeen area continues its modest recovery, in line with the improving energy-based economy. There were nine sales above £1million in the region, compared with eight in 2018. The largest capacity for growth is in Greater Glasgow. Despite strong demand, million pound transactions in the city and surrounding area fell from 31 in 2018 to 26 last year, which reflects a shortage of stock available to meet demand. This is further compounded by a lack of downsizing options for some sellers at the top end, with off-market deals making up more than a half of second hand transactions last year.

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