Publication

Spotlight: Delivering residential development in Scotland

Strong demand dynamics are driving the development market in both Glasgow and Edinburgh. But the cities face different opportunities and challenges


Summary

■ Social landlords are proving an important source of new homes in both cities delivering quality homes in accessible locations.

■ Regeneration developments are providing attainable homes and Help to Buy is supporting developers and purchasers in these locations.

■ High demand and low supply levels in prime markets are pushing demand and development beyond the traditional borders.

■ Glasgow’s West End remains ever popular and the city’s Southside is finally seeing development return to meet demand.

■ Domestic and international demand is driving development in Edinburgh, which is encouraging prices per square foot to exceed previous thresholds.

Outlook

Viability and affordability will continue to be key issues for the residential development sector in Scotland’s largest cities

■ Development starts are improving yet remain below current and future housing requirements. Given annual household growth of around 3,000 in Edinburgh and 1,750 in Glasgow, a constant supply of more homes are required across both cities.

■ Development sites in locations where people want to live, with good connectivity and a range of amenities, will remain popular with developers and purchasers. Achieving the right density, and tailoring the product to meet the aspirations of targeted buyers, will maximise returns.

■ New homes in emerging regeneration areas are providing the attainably priced homes the market needs. However, investment aimed at improving the quality of local amenities will provide these locations with longevity.

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