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Values, trends and forecasts for Glasgow’s residential property market
A snapshot of the Glasgow property market
As Scotland's largest city, Glasgow is renowned for its vibrancy, rich heritage and welcoming people, and has even scooped the accolade of the friendliest city in the UK 2022. Home to the Scottish Ballet, the Scottish Opera, the National Theatre of Scotland, and a thriving arts and music scene, Glasgow really is the cultural heart of the country.
It offers an excellent mix of internationally acclaimed museums, galleries and nightlife, as well as spectacular architecture, fantastic shops and a diverse array of restaurants and bars.
There are also many ‘20-minute neighbourhoods’ taking shape in Glasgow - a concept that is gaining interest across the globe, whereby residents of a community can easily access their daily needs by bike or on foot.
Following a two-year race for the countryside, fuelled by the pandemic, urban and suburban living is now very much back in fashion. The natural charm of Glasgow draws people from far and wide, and buyers are flocking to a number of great locations in and around the city, where options for working, socialising, education and culture are in abundance. Access to urban green space remains highly prized by buyers, as does high-quality property design, construction and finish.
Research and insights
Property values across Glasgow
It’s been well documented that the Covid-19 pandemic sparked a lifestyle change among many home buyers. There was a desire for more space and a separate room to work or study due to more flexibility around working patterns. For some buyers, proximity to local services, family and place of work was a priority.
These trends have also played out across the prime markets of Glasgow and its surrounding areas. Here, demand has been driven by those wanting to move to a larger property, with many relocating from other parts of the UK and abroad.
However, new stock coming onto the market was unable to keep pace with strong demand levels and so this imbalance led to strong price growth. We’ve seen prime prices across the city area of Glasgow and its surrounding country areas increase by 18% and 12% respectively since the start of the pandemic in March 2020.
But more recently, economic uncertainty, rising living costs and higher interest rates has led to some caution among buyers as their spending power has come under pressure from disruption in the mortgage market. And whilst the prime housing markets tend to be more driven by equity than debt, they aren’t completely immune to these pressures.
Specifically for the Glasgow area, around three quarters of Savills buyers since the beginning of the pandemic have used cash or equity so this could go some way in insulating these markets against these pressures.
Nevertheless, demand across Glasgow, whilst exceeding pre-pandemic levels, has softened and there has been a slight drop in prime prices in recent months. There is more availability and choice for buyers, however underlying demand for well-presented and appropriately-priced properties remains.
Looking ahead, though the prime market is less dependent on mortgage debt than the rest of the UK housing market, we expect further rate rises to impact buyer sentiment.
Coming at a time when more stock has been brought to the market, this is likely to result in price adjustments and transactions reducing over the period of the next 12 months as market conditions soften.
Going forward, some sellers may need to respond to the change in market conditions by adjusting their price expectations and realign with buyers who are now exercising more caution in their budgets and price offers.
That said, the prime markets of Glasgow and surrounding areas will remain resilient as the value gap, quality of life alongside the strength and depth of Glasgow’s economy means there’s more capacity for growth and we expect the markets here to outperform the overall prime UK market over the next five years.
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