Greater Glasgow’s diverse economy contributed to 29% of Scotland’s economic output in 2017. It accounts for 28% of Scottish companies and 34% of the country’s jobs. Glasgow itself is Scotland’s largest city and with more foreign direct investment than any other Scottish city, it is considered to be one of the top 10 large global cities of the future, according to fDi Intelligence.

Continued economic growth has supported a strong housing market across Greater Glasgow, with the number of residential transactions increasing annually by 4% during the 12 months ending June 2019, slightly ahead of Scotland.

Demand for prime housing remains strong as evident in the 9% increase in the number of buyers registering with Savills in Glasgow during 2019. But supply constraints continue, with 5% fewer properties available to buy compared to last year. This continues to put upward pressure on house prices. A 3.9% annual price growth to Q2 2019 across the city of Glasgow meant its prime market was among the top five outside London.

We believe there is capacity for further growth. Despite some examples of exceptional properties that have bucked the trend, average values across the city are still 5% lower than the peak of 2007/08. This compares to values in other leading university cities across the UK, which have exceeded the peak by almost 20%.

Prime market overview

Following a 22% rise in activity at £400,000 and above during the 12 months ending June 2018, activity in Greater Glasgow’s prime residential market remained stable over the last year, with 1,219 transactions. This is despite a drop in prime new build supply.

The prime second hand market witnessed a 9% rise in sales, with a record 925 transactions. We expect the prime new build market to recover in the coming year, as a number of developments in city and suburban locations that have been in the planning pipeline for a number of years have now come on stream and are unlocking pent-up demand.

City hotspots

The city of Glasgow accounted for 31% of Greater Glasgow’s prime activity during the last year. Within Glasgow, 64% of prime activity took place in the West End and surrounding Partick, Jordanhill and Park neighbourhoods. This combined area saw an 8% annual rise in prime second hand activity, led by the G11 and G13 postcodes which cover Partick, Broomhill and Jordanhill. In the southside hotspots of Pollokshields and Newlands, there were 75 prime transactions, which was the highest annual number since 2007/08.

Surroundings areas

At 200 transactions, East Renfrewshire witnessed its strongest ever prime second hand market over the last year. Whilst the traditional hotspot of Giffnock witnessed a steady prime second hand market, a niche new build development pushed overall activity to a record high.

The overall East Renfrewshire prime market is expected to grow further as more completions take place at new build developments in the sought-after suburb of Newton Mearns. Towards the north of Glasgow, East Dunbartonshire also saw a record number of prime transactions (265), supported by a rise in new build activity in Bearsden and Lenzie in particular.

In Lanarkshire, towards the east of Glasgow, a rise in new build activity stimulated the prime second hand market, which saw a record 132 transactions over the last year.

Wider market

Over the last 12 months, growth in transactional activity has spread out from the city of Glasgow and surroundings hotspots into the more attainable commuter locations of Lanarkshire, Inverclyde, Renfrewshire and West Dunbartonshire.

According to our research, annual house price growth in these areas averaged 6% during June 2019. Furthermore, there was a 7% annual rise in transactions in these areas. The locations that have seen a significant rise in transactions are mainly on the periphery of Glasgow, as its sphere of influence spreads.

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