Welcome to the second instalment of The Professors property market breakdown! After taking a look into the Manchester property market last time out, we thought we’d head even further up North and look into the booming property hotspot that is Glasgow.
Glasgow is one of the most recognisable cities in the UK and is without a doubt the cultural hub of Scotland. The city was one of the first European Capitals of Culture when it was awarded the title in 1990 and has gone from strength to strength ever since. In 2019, the city was named the UK’s top cultural and creative city in ‘The Cultural and Creative Cities Monitor report’, beating the likes of London, Bristol and Brighton to name a few.
This strong cultural heritage has no doubt paved the way for a significant improvement in the economy over the years as more and more people choose to both visit and/or move to the city. According to Glasgow City Council, the city generates £19.3billion GVA per annum – by far the most of any Scottish city and the fastest growing in the UK. This impressive economic performance paired with a strong culture that makes the city extremely desirable to live in, has resulted in huge growth when it comes to the Glasgow property market!
Property Market Overview
Glasgow has experienced a substantial increase when it comes to house prices over the years. In the last decade, prices have increased by over 43% – massively above the Scottish average growth of 29.6% (Zoopla, October 2021). House prices in Scotland are only set to continue this upward trend in the coming years. According to Savills, house prices in Scotland are set to increase by 24.4% in the 5 years to 2025, and with Glasgow’s house price growth historically above that of the Scottish average, you can be sure to see substantial growth in the city.
As well as the impressive house price growth, rents in Glasgow have performed equally as well. According to ECA International, rental growth in Glasgow was the highest in the UK in the 12 months to April 2021, with the city experiencing a record-breaking increase of £73 per month on average. At the time of writing, the average rent in Glasgow currently stands at £1,071pcm (home.co.uk). When breaking this down by property type, the average rent for an apartment is £1,100pcm, whilst a house is significantly cheaper at £518pcm. The desire for central living in Glasgow has resulted in an extremely prosperous rental market in the in the city, and with house prices set to continue their upward trend, Glasgow offers an excellent investment location for residential property.
Glasgow Student Property Investment
With such a strong residential property market in the city, many people overlook the Purpose-Built Student Accommodation (PBSA) market. Glasgow’s student population is absolutely rocketing, with the city region having the largest student population and the second highest in the UK! There are more than 185,000 students from 140 countries who live and study in one of the city’s five universities. Without a doubt the most popular of the five is that of the University of Glasgow. The University is one of the 24 members of the Russell Group of Universities, a selection of world-class, research-intensive universities. The University has also ranked in 12th place in The Times Good University Guide 2022, up two places from the year prior.
Having a mix of such esteemed universities in the city has resulted in a prosperous student property market. The universities are struggling to accommodate their growing number of students, resulting in extremely high demand for privately owned student accommodation. Savills echoed this sentiment in their Spotlight: UK Purpose-Built Student Accommodation report, placing Glasgow in the upper second table in their ranking of student development locations.
The investment potential in Glasgow is clear to see, with both residential and student markets flourishing at the moment and expected to continue to do so in the coming years. If you’re interested in investing in Scotland’s largest city, why not take a look at some of our properties on offer? We have a selection of both residential and student investment opportunities available, with prices from just £45,000 and NET yields up to 7.84% – take a look today!
