Authored by the expert who managed and guided the team behind the United Kingdom Property Pack
Yes, the analysis of Edinburgh's property market is included in our pack
What do the latest numbers reveal about Edinburgh’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Edinburgh, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) Properties with home offices in Edinburgh increased by 18% in 2024
In 2024, the number of properties with home offices in Edinburgh increased by 18%.
During this period, Edinburgh saw a 12% rise in new property listings in February compared to 2022 and 2023. This surge meant more homes, likely with home offices, were available for buyers and renters.
The housing market in Edinburgh also experienced increased availability and slightly lower rent prices in 2024. Despite these changes, demand for properties remained strong, especially for smaller homes.
Smaller properties are particularly attractive to those seeking efficient space use, often incorporating home offices to meet modern living needs.
These trends reflect a shift in buyer preferences, with many prioritizing flexible living spaces that accommodate remote work.
Sources: Edinburgh Letting Centre, Cullen Property
2) A semi-detached house in Edinburgh currently costs an average of £400,000
In Edinburgh, the average cost of a semi-detached house is now £400,000.
This price bump is a result of Edinburgh's consistent demand for housing, fueled by its reputation as a vibrant cultural and economic center. People flock to the city for its rich history and job opportunities, which naturally drives up property values.
Adding to the price surge is the city's limited space for new developments. With little room to expand, existing homes, especially semi-detached ones, have become increasingly valuable. This scarcity makes each property a hot commodity.
Across the UK, the housing market has been on an upward trajectory, and Edinburgh is no exception. The city's market has shown steady growth, mirroring the national trend and pushing average prices higher.
Edinburgh's housing market remains robust, with property prices rising steadily. This resilience is a testament to the city's enduring appeal and economic stability.
Sources: Home.co.uk, Umega, Property Wire
We have made this infographic to give you a quick and clear snapshot of the property market in the UK. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Edinburgh property prices are expected to increase by at least 3% in 2025
In 2025, Edinburgh's property prices are set to rise by at least 3%.
Across the UK, house prices are on a slow but steady climb. According to Belvoir Estate Agents, the national trend shows a 2% to 3% increase expected in 2025. This pattern is likely to reflect in Edinburgh, suggesting a similar upward movement in property values.
The ESPC House Price Report from late 2024 paints a lively picture of Edinburgh's market. It notes a 4.4% increase in new properties and a 25.1% jump in sales volumes. Such activity indicates strong demand, which typically pushes prices up.
Scotland's Housing Market Forecast, as reported by The Scotsman, is optimistic about 2025. With over £200 million in home sales anticipated, the market seems to be stabilizing, further supporting the expectation of rising prices in Edinburgh.
Umega's Property Market Forecast adds to this positive outlook. They project a potential rise in house prices of up to 5% in 2025, following a more modest increase in 2024. This suggests a potential for higher growth rates, reinforcing the expectation of at least a 3% increase in Edinburgh.
Sources: Belvoir Estate Agents, ESPC House Price Report, The Scotsman, Umega Property Market Forecast
4) Demand for one-bedroom apartments in Edinburgh rose by 10% in 2024
The demand for one-bedroom apartments in Edinburgh increased by 10% in 2024.
In Edinburgh, the rental market was buzzing, especially for one-bedroom apartments. By the end of 2024, rents for these units shot up by 14% compared to the previous year. These apartments were snapped up in an average of just 13 days, highlighting the fierce demand.
Finding a one-bedroom apartment became a real challenge due to a notable shortage of available rentals. This scarcity led to intense competition among tenants, making it tough for many to secure a place.
During the second quarter of 2024, the average rent for a one-bedroom apartment climbed by 8.1%, reaching £1,080 per month. This increase in rent underscores the high demand and limited supply of these units.
With such a tight market, tenants were often left scrambling, as the quick turnover of just 13 days meant properties were gone almost as soon as they were listed.
Overall, the combination of rising rents and limited availability painted a clear picture of a market under pressure, with tenants facing fierce competition for one-bedroom apartments.
Sources: Cullen Property, The Intermediary, Edinburgh Letting Centre
5) A detached house in Edinburgh now costs an average of £550,000
The average cost of a detached house in Edinburgh is currently £550,000.
Back in 2024, the price for these homes was reported at £752,000, indicating a significant drop to today's average. This shift suggests a possible market correction or stabilization over time. In contrast, the overall average price for properties in Edinburgh was £398,983, with detached homes naturally commanding higher prices.
Several factors influence these fluctuations, including economic conditions, demand, and interest rates. These elements have likely played a role in shaping the current average price of £550,000 for detached houses, reflecting a balance between past peaks and today's market.
Understanding these dynamics is crucial for potential buyers. The property market is not static; it responds to various influences, which can lead to price adjustments. For instance, changes in interest rates can affect affordability, impacting demand and, consequently, prices.
Moreover, economic conditions, such as employment rates and consumer confidence, can also sway the market. When the economy is strong, people are more likely to invest in property, driving prices up. Conversely, economic downturns can lead to price drops as demand wanes.
In Edinburgh, these factors have contributed to the current pricing landscape, offering a snapshot of the market's evolution. For those considering a purchase, it's essential to stay informed about these trends and how they might affect future property values.
Sources: Home.co.uk, ONS
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6) A two-bedroom apartment in Edinburgh currently rents for £1,500 per month
The average rental price for a two-bedroom apartment in Edinburgh is currently £1,500 per month.
In recent years, Edinburgh has seen a surge in rental demand, which has driven prices up. By 2023 and 2024, this demand had become particularly intense, leading to significant increases in rental prices across the city. This trend is evident in the Edinburgh Letting Centre's Rental Market Report, which highlights the rapid pace at which properties are being rented out.
According to the report, 81% of all properties were let within a month, indicating a highly competitive market. This high demand naturally extends to larger properties, such as two-bedroom apartments, pushing their rental prices higher. The report also noted that the average monthly rent for one-bedroom properties was £1,503, suggesting that two-bedroom apartments would command even higher prices.
Meanwhile, data from Clan Gordon's First-Time Tenants Budget Planner showed a different perspective. It reported that the average rent for a two-bedroom property was £986 per month, with a 3.8% increase over the past year. Although this figure is lower than the current £1,500, it still reflects the overall trend of rising rents in Edinburgh.
These figures suggest that the rental market in Edinburgh is dynamic and subject to rapid changes. The disparity between the reported average rents highlights the variability in pricing, depending on location and property specifics. However, the consistent theme is that rental prices are on an upward trajectory, making it crucial for potential renters to stay informed.
As Edinburgh continues to attract more residents, the pressure on the rental market is likely to persist. This ongoing demand will likely keep prices elevated, especially for desirable properties in prime locations. For those considering renting in Edinburgh, understanding these trends is essential to navigating the market effectively.
Sources: Clan Gordon's First-Time Tenants Budget Planner, Edinburgh Letting Centre's Rental Market Report
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.