The cost per square foot of property in Scotland can vary significantly depending on the location, type of property, and other factors. In this article, we will take a detailed look at property prices per square foot across different regions of Scotland to help buyers understand the market.
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Average cost per square foot in Scotland
According to the Registers of Scotland, the average price per square foot for residential property in Scotland as of Q3 2022 was £162. This represents a 3.8% increase over the same period last year.
However, this national average masks significant regional variations across the country. Urban areas like Edinburgh and Glasgow command a premium price per square foot, while rural and island communities have lower average values.
Factors affecting cost per square foot in Scotland
Some of the key factors that influence the cost per square foot of property in Scotland include:
- Location – Properties in major cities and affluent commuter areas tend to have a higher price per square foot. Rural and remote regions are usually cheaper.
- Property type – Detached houses and bungalows typically have a higher price per square foot than flats and terraced houses.
- Size – Larger properties tend to have a lower price per sqft compared to smaller homes and flats.
- Condition – New build and recently renovated properties command a premium price over dated, fixer-upper homes.
- Facilities – Properties with modern facilities, parking, gardens etc. tend to achieve higher prices per square foot.
Beyond this, the balance of supply and demand fundamentally drives prices per square foot in a given area. When demand is high relative to available supply, prices tend to rise.
Price per square foot by region
Here is an overview of the cost per square foot of residential property in different regions across Scotland:
Edinburgh
Edinburgh is Scotland’s most expensive property market, with an average price per square foot of £302 according to Registers of Scotland data for Q3 2022. This marks a 15% annual increase, indicating strong demand in the capital. Within Edinburgh, prices range from around £200 per sqft for flats in Leith to over £600 per sqft for large detached villas in the most prestigious parts of the city.
Glasgow
Scotland’s largest city Glasgow has an average price per square foot of £185, making it significantly more affordable than Edinburgh. However, prices vary widely across the Glasgow area. Flats in the city center and West End can sell for £300+ per sqft while rooms in student heavy areas go for under £100 per sqft.
Aberdeen
Traditionally one of Scotland’s most expensive cities due to the North Sea oil industry, Aberdeen has an average price per square foot of £175. However, continued weakness in the energy sector has seen Aberdeen property values decline around 15% from their 2014/15 peak.
Dundee
Located on the east coast, Dundee has emerged as a tech and creative hub in recent years. But property prices remain very reasonable, with an average price per square foot of just £133. Waterfront apartments and large detached homes can sell for over £200 per sqft, while prices in further out suburbs are closer to £100 per sqft.
Stirling
The historic city of Stirling, strategically positioned between Glasgow and Edinburgh, has an average price per square foot of £159. Detached homes in desirable neighborhoods sell for upwards of £200 per sqft, while prices for flats are closer to £130 per sqft.
Perth
Perth in central Scotland has experienced significant property investment and development in recent years. The current average price per square foot sits at £150, ranging from £100 to £250 per sqft across different property types and locations around the city.
Inverness
As the commercial hub of the Scottish Highlands, Inverness has seen its popularity grow with relocators and second home owners. The average price per square foot is now £130. New build homes on the outskirts of town tend to sell for £150-£200 per sqft.
Scottish Borders
In the rural Scottish Borders region, the average price per square foot is approximately £130. However, there is significant variation from around £100 per sqft for basic flats in Galashiels to over £200 per sqft for prime country homes near Melrose.
Scottish Islands
Outlying island communities like Shetland, Orkney and the Outer Hebrides tend to have the lowest property prices per square foot in Scotland. Average values range from £100-£150 per sqft, going up to £200+ per sqft for higher end detached homes.
Price per square foot by property type
In addition to location, the type of property is a major factor determining its price per square foot in Scotland. Here is an overview of average values by property type:
| Property Type | Average Price Per Sqft |
|---|---|
| Detached House | £177 |
| Semi-Detached House | £162 |
| Terraced House | £148 |
| Flat | £222 |
| Bungalow | £159 |
As seen above, flats have the highest average price per sqft at £222, followed by detached houses at £177 per sqft. Terraced houses are the most affordable on a per square foot basis with an average of £148.Buyers should factor in property type along with location when evaluating price per square foot.
Factors that could impact future prices per square foot
Looking ahead, there are several factors that could potentially impact property prices per square foot across Scotland:
- Interest rates – Rising mortgage rates tend to dampen demand and slow house price growth.
- Economy – If Scotland enters a recession, unemployment rises and incomes drop, property values may fall.
- Supply – A significant increase in new housing development could outpace demand and bring down prices.
- Investment – Ongoing investment in infrastructure and regeneration programs, especially in Glasgow and Dundee, could boost prices in those areas.
- Climate change – Coastal flooding risks may reduce demand and prices in exposed east coast locations.
- Taxes – Changes in property transaction taxes or capital gains tax could affect demand.
On balance, most analysts expect Scottish property prices per square foot to continue rising moderately over the next 5 years, absent a major economic shock. However, the rate of growth is likely to be slower than in the past decade.
Conclusion
In Scotland’s property market, location is the most important factor determining prices per square foot. Major cities like Edinburgh and Glasgow command premiums, while rural and island areas tend to be cheaper on a cost per sqft basis. Across the country, flats and detached homes achieve higher rates per square foot than terraced or semi-detached properties. While national average prices currently sit at around £160 per sqft, values range from as low as £100 per sqft up to over £600 per sqft depending on the region and property specifics.
With mortgage rates rising and economic uncertainty ahead, Scottish property price growth may moderate over the next few years. But the country is expected to remain an attractive destination for both domestic home buyers and international investors. Understanding the cost per square foot dynamic across Scotland is key for buyers seeking to maximize value from their budget.