Despite a more challenging economic backdrop, our latest residential analysis reveals Scotland’s million pound plus market continued to attract strong interest and premiums in the first half of the year, with sales activity in 2023 so far being above pre-pandemic levels.

Whilst this sector of the market is largely driven by cash buyers, it is not immune from pressure on pricing due to accelerating mortgage rates and increased price sensitivity; as such realistic asking prices will remain key to achieving a good sale in the current market. 

Scotland remains the most ‘searched-for’ UK region on Savills property website, attracting wealthy buyers from all over the world.  So far this year buyers have come from locations as wide ranging as Bermuda, Hong Kong, Republic of Ireland, New Zealand, Netherlands, the USA. However, it is interesting to note the strength of the local market with the proportion of Scottish buyers increasing to 70% from 62% last year.

Going forward, demand for our top-end properties is likely to be underpinned by various prevailing factors:  these include the quality of life on offer north of the border, the limited number of well-presented homes available in Scotland’s most sought-after locations, and the value gap that exists in relation to comparably priced properties south of the border.

There were 167 transactions recorded above £1 million across Scotland during the first half of 2023. This was slightly behind the 178 and 179 recorded in the same months of 2021 and 2022 respectively, both extraordinary periods for this top-end market.

Whilst Edinburgh City has dominated the market so far this year, accounting for 47% of activity, Glasgow City saw its highest ever first half total, with 13 transactions recorded at £1 million and above.

There was an increase this year in million pound transactions in the suburbs around Scotland’s largest cities, smaller towns and villages across the Central Belt and commutable country areas. This reflects their enduring appeal among aspiring buyers seeking a lifestyle change and more space, underpinned by flexible working patterns.

Leading million pound locations around Edinburgh this year included Gullane and North Berwick in East Lothian. Meanwhile, St Andrews continues to dominate Fife’s million pound market, which also saw its highest ever first half total.

Elsewhere, the Scottish Borders witnessed its strongest top-end market in H1 2023 since the same period of 2008, led by the county of Peebles-shire.

Around Glasgow, million pound sales so far this year in areas with sought-after schooling such as Newton Mearns in East Renfrewshire and Bearsden and Milngavie in East Dunbartonshire saw a fourfold increase.

Million pound activity in other parts of Scotland in the first half of 2023 was limited in numbers but steady compared to 2022, with a notable up-tick in areas around the city area of Stirling.

Further information

Contact Faisal Choudhry