Current supply

Savills Research has analysed current and recently completed new build developments across the Local authority areas of Edinburgh City and Glasgow City. Across the 60 sites in Edinburgh City there is scope for around 4,500 properties of which 3,200 have sold, 250 are available to purchase and a further 980 are yet to be released. Meanwhile, across the 37 sites analysed in Glasgow City, there is scope for almost 4,000 properties of which over 2,300 have sold, 178 are available for sale and a further 1,500 are yet to be released.

Highly affordable, well advertised housing in regeneration areas has augmented the average rate of sale in both cities. This is especially the case in Glasgow where the recently launched Commonwealth games Village has generated 183 reservations in six weeks. Excluding this site, the average rate of sale across Glasgow is two units per month. Similarly in Edinburgh the average rate of sale is marginally over two per month.

The popularity of high quality, well located and correctly priced new build developments continue to command a high level of interest across both cities, suggesting there is ongoing pent up demand. Buchanan Gardens, which was the first high quality new build development in Glasgow City centre for a number of years, achieved a rate of sale of eight per month. Similarly, a development in the Broughton area of Edinburgh is achieving a rate of sale of six per month.

New build prices

Price per square foot (£psf) is a popular tool used to compare and analyse developments and show wider trends within local housing markets. The overall average £psf was £269 in Edinburgh and £196 in Glasgow. however, as shown in maps 1 and 2, this masks considerable local variations.

Developments around Central Edinburgh have achieved in excess of £300 psf. Niche developments have dominated this market and the only larger scheme, in the Springside area, achieved a higher £psf.

Regeneration developments in Edinburgh have boosted supply and are proving good value for money in an undersupplied mid-market.

The prime suburban areas of Blackhall and Fairmilehead, which are popular with families, are achieving above average £psf for detached properties. The high premiums being generated are due to the chronic shortage of suitable family housing within similar locations in the city.

Likewise, prime developments in Glasgow City Centre, Park and the West End, shown in darker red, achieved average prices of £265 psf and the more niche developments have achieved closer to £300 psf.

Regeneration in the south and east of the city has brought about considerable residential development and these are currently offering substantial value for money.

Suburban areas, such as Stepps and Broomhouse, with established communities and good transport links, continue to perform well. In our opinion, these developments provide family housing which represents good value for money.

Whilst Graph 1 conceals local variations, it shows there is considerable regional difference between Glasgow and Edinburgh. Flats are comparable in terms of size in both cities but terraced, semi detached and detached houses in Edinburgh are all, on average, markedly larger and command higher £psf.

Taken from
Spotlight: Edinburgh City and Glasgow City Residential Development Sales