There was a modest increase in transactions at the top end of the market above £1 million, with 136 sales recorded in 2013 compared to 125 during 2012 (see Graph 2). The current level of 136 transactions is 11% below the 10-year annual average of 152 transactions.

The million pound market in Scotland has been affected by a falling number of home-grown buyers. On the other hand, the number of purchasers from outside Scotland approached its highest level since the peak of the market in 2007, with 41 sales recorded to buyers from outside Scotland last year, the same level as 2007.

Non-Scottish buyers made up 34% of this market last year, compared to 26% in 2012. The majority of non-Scottish million pound buyers last year came from London, with overseas purchasers mainly coming from other parts of Europe, the USA and the Middle East.

Edinburgh, the traditional hub of the prime market with a 51% share of this market, saw a rise at the top end, representing 69 transactions during 2013 compared to 54 in 2012. The Aberdeen area, Greater Glasgow and Tayside together made up 35% of the million pound market, representing 47 transactions. The top-end of the market in some of Scotland’s country locations remained slow, with only 20 sales last year at £1 million and above.

Last year, the West End of Glasgow saw five residential transactions above £1 million, which were the first such sales in this location since 2011. Across Scotland, there were only seven transactions at £2 million and above last year compared to 11 in 2012. However, there was an increase in activity in this price band at the end of last year, which should improve the numbers for 2014.

Estates market

The total value of Scottish estates traded last year was in excess of £54 million, an increase of 17% compared to 2012. There have been varying price tags for the estates traded, with one selling for almost £20 million and the majority for £6 million or less. Out of the 13 estates that sold last year, five transactions were private deals. Our analysis of openly marketed Scottish estates shows that the buyers were split equally between the UK and mainland Europe.

The majority of viewers have been international businessmen, attracted by the range of sport on offer. The impending referendum on Independence in September this year does not appear to have made a significant difference to the market. A handful of buyers are putting their search on hold until the outcome of the vote and the consultation on Land Reform is known. The majority still view Scotland as a relatively safe haven for their money.

Taken from
Spotlight: Scotland's Prime Residential Property Market