Scotland’s new build market saw a 5% annual rise in the number of transactions during the year ending June 2017. The market continues to be supported by the Help to Buy equity loan scheme, which had contributed to 25% of all new build completions by the end of last year.
The new build hubs in Scotland are Edinburgh, Glasgow and Lanarkshire. Together, these areas made up 36% of all new build transactions. The biggest increase in activity took place in East Lothian and Fife.
The new build market was most active in the price bands between £200,000 and £400,000. Above £400,000 the market is adjusting to LBTT, but only up to £700,000. Above £700,000, the new build market has seen a drop in annual activity. We expect much anticipated trophy developments in the West End of Edinburgh and the Park District of Glasgow to boost the top end of Scotland’s new build market over the course of the next couple of years.
Mixed-use development opportunities in central Glasgow
Mixed-use schemes will be the key drivers that bring forward new residential, office and leisure developments within central Glasgow. In doing so, these will change how we live, work and socialise.
For schemes with a residential component, proximity to established markets is important. The Merchant City and West End markets will be the main drivers. The Merchant City commands a premium due to its residential reputation, central location and proximity to the University of Strathclyde.
The West End is larger, both in respect of transactions and geography. Due to a comparatively high transaction value, the West End creates opportunities on its periphery. These have included Finnieston and Park areas, which are now firmly established and are creating opportunities on their own peripheries, as they consolidate and improve.