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What will happen in Glasgow’s real estate market? Will prices go up or down? Is the city still a hotspot for foreign investors? How is the Scottish government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local estate agents, property developers, and clients who buy properties in Glasgow, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Rental yields in the West End will rise due to higher demand for student housing
Rental yields in Glasgow's West End are on the rise as more students flock to the area.
The University of Glasgow has seen a 40% increase in student numbers over the past five years, adding over 10,000 students. This surge means more students are looking for places to live, boosting demand for housing in the West End.
On-campus housing is limited, so many students are turning to off-campus options. This shift is evident in the low vacancy rates in West End properties, indicating that these homes are in high demand, which naturally pushes rental yields higher.
Looking at other cities, areas with large student populations often see higher rental yields. Take Manchester, for example, where the average rental yield is 6.73% thanks to its significant student population. This pattern suggests that as the student numbers in the West End grow, rental yields will likely increase too.
Investors are taking note, as the West End's appeal isn't just about the numbers. The area offers a vibrant lifestyle with cafes, shops, and cultural spots, making it a desirable place for students to live.
With the combination of rising student numbers and limited on-campus housing, the West End is becoming a hotspot for property investors looking to capitalize on increasing rental yields.
Sources: Rettie, Track Capital, Glasgow University SRC
2) Glasgow will remain appealing to European investors even after Brexit
European buyers have continued to see Glasgow as an attractive investment destination even after Brexit. One of the main reasons is the rising property prices in Glasgow. Over the past five years, property prices in Glasgow have increased by 23%, which is significantly higher than in other UK cities like Middlesbrough and Newcastle. This shows a strong and resilient property market, making it a promising long-term investment.
Another factor is the increased foreign investment in Glasgow. The city has been ranked as the number one large European city for strategy in attracting overseas investment. This is largely due to its innovative approach, which involves partnerships between academia, industry, government, and local communities. Major companies like Barclays, JPMorgan Chase, and Morgan Stanley have invested in Glasgow, creating over 6,000 jobs in the past five years.
Glasgow also offers strong rental yields and demand, with one of the highest average rental yields in the UK at 7.25%. This makes it a favorable destination for buy-to-let investors. The high rental yield is driven by high rental prices and relatively low property prices, creating a lucrative market for investors.
Glasgow’s growing reputation as a cultural and economic hub further enhances its attractiveness. The city has seen significant growth in sectors like tech, the green economy, and advanced manufacturing, contributing to high-skilled job creation. Additionally, Glasgow’s cultural scene is thriving, with various infrastructure projects aimed at enhancing public spaces and connectivity.
Sources: Track Capital, Digit, Glasgow City Council
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Demand for rentals near universities will rise as the student population keeps growing
The student population in Glasgow is on the rise, which means more demand for rental properties near universities.
In the last five years, the University of Glasgow's student numbers have jumped by 40%, adding over 10,000 students. This is much higher than the UK's average growth of 16% during the same time.
Even though the University of Glasgow plans to keep student numbers steady for the 2023/24 academic year, they're gearing up for more growth in 2024/25. This shows they're planning ahead to welcome more students.
Projects like turning Lilybank Gardens into student residences are part of the university's strategy to handle this growth. These developments hint at a future with even more students coming to Glasgow.
Finding student accommodation in Glasgow is tough, with many students struggling to secure housing. This shortage, along with the growing student numbers, means rental properties near universities are in high demand.
Rental prices in these areas are climbing, reflecting the strong demand driven by the increasing student population. Investing in property near universities could be a smart move given these trends.
Sources: Glasgow University SRC, Urban Realm, Glasgow University SRC, University of Glasgow
4) Suburban property prices will grow more slowly than urban ones
Suburban areas around Glasgow are expected to see slower price growth compared to the bustling urban centers.
In the heart of Glasgow, population density is much higher, meaning more people are packed into a smaller space. This naturally leads to a higher demand for housing, which pushes prices up faster than in the quieter suburbs.
Looking back, urban areas have consistently shown stronger price growth. For instance, prime properties in Glasgow city have seen a noticeable price increase over the past year, while suburban areas have stayed relatively flat. This trend suggests that urban centers are more appealing to buyers, likely because of the abundance of amenities and services.
Glasgow is buzzing with urban regeneration projects, attracting significant investment. These projects aim to revitalize central areas, making them more attractive to both residents and businesses. This kind of development is less frequent in suburban areas, which might explain the slower price growth there.
There's also a shift in lifestyle trends and demographics. Younger folks are increasingly drawn to city centers, lured by the convenience and cultural opportunities. This preference for urban living is driving demand and price growth in these areas.
In short, while suburban areas offer a quieter lifestyle, urban centers like Glasgow city are where the action is, both in terms of living and property investment.
Sources: World Population Review, Invest Glasgow, FutureScot
5) Glasgow’s home prices will keep rising because demand is high and supply is low
In recent years, we've seen a significant surge in property prices across Glasgow, particularly in the sought-after southside. Between July 2023 and June 2024, properties in this area sold for nearly 25% more than the city-wide average, with an average price of £219,000 compared to the Glasgow average of £177,000. This indicates a strong demand for housing in specific areas, driving up prices.
Glasgow's population growth has been a major factor contributing to the high demand for housing. As more people move to the city, the need for housing increases, especially for larger family homes. This growing population puts pressure on the housing market, making it more competitive.
On the supply side, the availability of new housing developments is limited. The Glasgow Local Housing Plan aims to deliver 6,500 new homes over five years, but achieving these targets is challenging. This limited supply, combined with high demand, naturally leads to rising property prices.
Additionally, the rental market in Glasgow is under pressure, with a high demand for social rented homes. Over 64,000 applications are held on housing registers, with about 10 applicants waiting for every home let in the previous year. This demand for rental properties further supports the overall property market.
Mortgage interest rates have remained stable, encouraging property investment. With rates back down to 4.75%, more people are inclined to invest in property, supporting house prices to rise in line with inflation. Furthermore, government policies, such as the new Housing Bill in Scotland, are expected to stabilize the rental market, indirectly supporting property prices.
The competitive nature of the Glasgow housing market is evident, with homes selling after an average of 42 days on the market, compared to 17 days the previous year. This indicates strong buyer interest and the potential for properties to sell above asking price, further driving up prices.
Economic growth and job opportunities in Glasgow attract people to the city, contributing to the demand for housing. The city's economic resilience, with price rises of around 5% in 2024, makes it an attractive place for both buyers and renters.
Sources: Property Wire, Glasgow's LHS 2023 to 2028, Portolio, Redfin
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6) Property prices in North Glasgow will grow more slowly because of ongoing socio-economic challenges
North Glasgow is facing several socio-economic challenges that are likely to slow down the growth of property prices in the area. One of the main issues is the high unemployment rate. In 2023, the unemployment rate in Glasgow City was 5.1%, which is significantly higher than the Scottish average of 3.5%. This indicates a tough job market, which can lead to economic instability and lower demand for housing.
Another factor is the lower average income levels. The employment rate in Glasgow City was 71.2% in 2023, compared to 74.7% across Scotland. This suggests that people in Glasgow might have less disposable income, making it harder for them to afford property. Additionally, the lack of new infrastructure projects or investments in North Glasgow can contribute to slower economic growth, which in turn affects property prices.
Historical data also shows that property price growth in Glasgow has been slower compared to other regions. For example, between November 2023 and 2024, house prices in Manchester rose by 3.1%, while Glasgow's growth was only 2.8%. This trend suggests that North Glasgow might continue to experience slower property price growth.
Sources: Buy Association Group, ONS, Storyblok
7) Luxury property prices in Glasgow will dip slightly as buyers focus on affordability
Glasgow's housing market is experiencing a shift as buyers lean towards more affordable options.
With rising interest rates, borrowing has become pricier, making luxury homes harder to buy. This trend started in the UK around 2023, when mortgage rates began climbing, squeezing what buyers could afford.
Living costs are also climbing, especially in Glasgow and Scotland, tightening budgets further. Inflation and higher expenses mean people have less to spend, pushing them towards more budget-friendly homes and away from luxury properties.
Recent data shows a dip in luxury home sales. In November 2024, Glasgow home prices dropped by 13.7% from the previous year, suggesting fewer luxury home purchases due to financial constraints and shifting priorities.
Consumer surveys echo this trend towards affordability. In early 2024, there was a 29% rise in buyers seeking prime Scottish homes compared to 2023, but the focus was on affordable options, not luxury.
Economic forecasts predict a slowdown in high-end real estate, with downward pressure on rural properties, reinforcing the shift away from luxury homes.
8) Demand for affordable housing will grow in various neighborhoods as the immigrant population diversifies
In recent years, Glasgow has seen a notable increase in its immigrant population. According to the Glasgow Migration Trends 2020-21, there was a net gain of 6,550 people from overseas moving into the city, contributing significantly to its population growth. This trend is expected to continue, as migration remains a key factor in demographic change.
The demographic reports show that the 15-29 age group has been the main driver of net migration in Glasgow. This influx of young people helps maintain the number of working-age individuals in the city, contributing to an increasingly diverse population. As these young immigrants settle, they will naturally seek housing options that are affordable and accessible.
Glasgow’s Local Housing Strategy (LHS) 2023 to 2028 highlights a significant need for affordable housing. The demand for social rented homes is high, with over 64,000 applications held on RSL housing registers across the city. This indicates a substantial shortage of affordable housing, which is further exacerbated by the growing immigrant population.
Sources: Glasgow Migration Trends 2020-21, Glasgow’s Local Housing Strategy (LHS) 2023 to 2028, Glasgow’s LHS 2023 to 2028 Annual Review Report
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.
9) Property values in Shawlands will rise steadily as it becomes a preferred location for families
Shawlands has become a preferred location for families, leading to a steady increase in property values. One of the main reasons is the improved school ratings and educational facilities. Shawlands Academy, for instance, has shown strong performance in literacy and numeracy, making it an attractive choice for families seeking quality education for their children.
Additionally, the area boasts increased family-friendly amenities, such as parks and recreational areas like Robertson Park. These spaces offer children opportunities to engage in physical activities and enjoy the outdoors, which is a significant draw for families. The rising demand for larger homes with gardens also plays a role, as Shawlands can offer these types of properties, aligning with the housing market trends in Glasgow.
Moreover, local government investment in infrastructure and community services contributes to a safer and more supportive environment for families. This, combined with the positive crime rate statistics indicating a safer environment, enhances Shawlands' appeal. The growing number of family-oriented community events and activities further solidifies its reputation as a vibrant community.
Sources: Understanding Glasgow, Education Scotland, Glasgow with Kids, Glasgow City HSCP
10) Property prices in Dennistoun will rise as more young professionals move in
Dennistoun has become a hotspot for young professionals, and this trend is likely to continue. The area has seen a significant rise in property prices, with recent transactions showing an annual increase of more than 11%. This upward trend is expected to persist as more young professionals are drawn to the neighborhood.
The demand for rental properties in Dennistoun has also surged. In 2023, the average rent in Glasgow was £1,142 per month, and Dennistoun's proximity to the city center makes it an attractive option for young professionals seeking affordable rents. The completion of a large-scale housing project by Home Group in 2024, which quickly filled 251 new homes, underscores the high demand for rental properties in the area.
Moreover, Dennistoun's vibrant community and cultural attractions add to its appeal. The opening of the Drygate Brewery and the renovation of the Tenants brewery have made the area more attractive, alongside the growth of independent restaurants. These factors, combined with excellent transport links and ongoing infrastructure developments, make Dennistoun a desirable place for young professionals to live.
Sources: Savills, Glasgow City Council
11) Property values in the Southside will rise as new transport links enhance connectivity
In recent years, the Southside of Glasgow has seen significant investment in transport infrastructure, which is expected to boost property values. The completion of the £6.5 million South City Way project has made the area more accessible and attractive by providing a safer and greener route for walkers, cyclists, and wheelers. This kind of improvement often makes neighborhoods more desirable, leading to increased demand for housing.
Moreover, the Avenues Plus programme, with a £21 million investment, is set to further enhance connectivity in the area. Scheduled to begin in early 2025, these projects will revamp key streets, making them more pedestrian and cyclist-friendly. Such enhancements not only improve the quality of life for current residents but also attract new ones, which can drive up property values.
Historically, areas with improved transport links have seen significant increases in property values. Studies show that properties near transport hubs can experience value uplifts, sometimes as high as 45% for apartments. This trend is supported by real estate analyses, such as the one from Savills, which noted a 24% higher average home price in the Southside compared to the Glasgow average between July 2023 and June 2024.
Sources: Property Wire, Showcase Sustrans, ITF OECD, Scottish Business News, Scottish Construction Now
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12) Rents in the Southside will rise as it becomes more attractive to families
The Southside of Glasgow is becoming a hot spot for families, and rents are expected to rise as a result.
One clear sign of this trend is the increase in property prices. In the past year, the average home price in Southside postcodes hit £219,000, noticeably higher than the Glasgow average. This jump in prices shows that the area is becoming more desirable and expensive.
Families are particularly drawn to the Southside because of the demand for larger homes. According to the Glasgow Local Housing Strategy, there's a growing need for homes with four or more bedrooms due to larger households. This demand indicates that families are eager to settle in the area.
Local amenities have also seen significant improvements, making the Southside even more appealing. Parks and schools have been upgraded, and the completion of the South City Way, a protected cycleway, has boosted public transport links. These enhancements make it easier for families to access the city center and other essential services.
These developments are transforming the Southside into a family-friendly area. The improved amenities and transport options are making it a convenient place for family living, which in turn is driving up demand and prices.
As the area continues to evolve, it's becoming a more attractive option for families looking for a vibrant community with easy access to the city. This shift is likely to keep pushing rents higher as more families move in.
Sources: Property Wire, Glasgow's LHS 2023 to 2028, Sustrans
13) More Asian investors will enter the Glasgow real estate market
In recent years, we've seen a noticeable increase in Asian investment in Glasgow's real estate market. Back in 2023, there was a significant rise in high-value residential transactions in the Glasgow area, suggesting growing interest from wealthy individuals, possibly including those from Asia. This trend continued into 2024, with projections indicating a shortage of quality office space in Glasgow, making it an attractive opportunity for international investors, including those from Asia.
Asian businesses have long been a part of Glasgow's commercial landscape, with many Asian retailers, particularly from Punjab, having established a presence in the city. This historical connection could be expanding into real estate investments. Additionally, companies like Far East Orchard from Singapore have been actively investing in Glasgow's student housing market, with a notable £38.9 million joint venture development. This move highlights the growing interest from Asian investors in the education sector, driven by the demand for student housing from international students, many of whom come from Asia.
Real estate agencies have also reported strong demand for family houses in Glasgow, which could attract Asian buyers looking for quality residential properties. The suburbs of Bothwell, Bearsden, and Giffnock have seen their strongest performances in high-end residential properties, indicating a growing interest in this segment. Furthermore, the economic growth in Asian countries like Singapore and China has led to increased wealth accumulation, encouraging overseas investments. This economic backdrop, combined with government policies in Asian countries that promote foreign investments, supports the flow of capital into Glasgow's real estate market.
Sources: Journal of Social Sciences, Mingtiandi, Savills
14) Demand for affordable housing will rise due to government incentives for first-time buyers
Government incentives for first-time buyers are designed to make it easier for people to purchase their first home. In Glasgow, these incentives have been particularly effective, as seen in the rising number of first-time homebuyers. In 2024, the average price paid by first-time buyers in Glasgow was £168,000, which is a 6.0% increase from the previous year. This shows that more people are entering the housing market, likely due to the support they receive from government programs.
One of the key reasons why these incentives increase demand for affordable housing is the availability of schemes like Help to Buy Scotland and the First Home Fund. These programs have already helped tens of thousands of households purchase their first homes. The First Home Fund alone provided £200 million to assist over 8,000 people, indicating a strong uptake of these incentives. This financial support makes homeownership more accessible, especially for younger buyers who are often looking for affordable options.
Moreover, Glasgow has a high share of sales from first-time buyers, with 64% of sales attributed to this group. This demographic is particularly interested in affordable housing, as evidenced by surveys like Aldermore’s First Time Buyer Appeal Index, which highlights Glasgow as an attractive city for young buyers. The combination of government support and the city's appeal to young buyers creates a strong demand for affordable housing.
Sources: ONS, Introducer Today, Scottish Government
We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Foreign investment in Glasgow’s housing market will rise as exchange rates remain favorable
Foreign investment in Glasgow's residential market is set to grow, thanks to favorable exchange rates.
In recent years, the exchange rate between the British pound and the US dollar has been relatively stable, making it easier for foreign investors to plan their investments. With a mid-market rate of 1.231 USD per GBP as of early 2025, investors can confidently purchase properties without worrying about sudden currency fluctuations.
Over the past year, the average exchange rate has hovered around 1.29, generally favoring foreign currencies against the British pound. This means foreign investors get more bang for their buck when buying properties in Glasgow, making the city an attractive spot for real estate investment.
Real estate agencies in Glasgow have noticed a surge in inquiries and purchases from foreign buyers. These investors are drawn to the city's high yields and competitive property prices. With prime rents at £36 per square foot, Glasgow offers a compelling opportunity for those seeking good returns.
Insider knowledge suggests that Glasgow's property market is not just about numbers. The city is known for its vibrant culture and growing tech scene, which adds to its appeal. Investors are not just buying properties; they are investing in a city with a promising future.
With these favorable conditions, it's no wonder that foreign investment in Glasgow's residential market is expected to keep rising. The combination of stable exchange rates and attractive property prices makes it a smart choice for savvy investors.
Sources: Wise, Glasgow City Council, OFX
16) City center yields will stay steady as young professionals keep up demand
Glasgow's city center rental market is booming, especially in 2023 and 2024.
Young professionals are flocking to the city, pushing the average rent up by 3.7% in Q2 2024 to £1,183 per month. They're particularly interested in one-bedroom apartments, which have seen a 6.1% year-on-year rent increase to £882 per month.
Glasgow's job market is a magnet for these young professionals, offering diverse career opportunities that keep rental demand steady. This steady job growth is a big reason why rental yields in the city center remain stable.
Urban living is trendy worldwide, and Glasgow is no exception. The city's lively atmosphere, packed with amenities and job prospects, makes it a hot spot for young people. This trend is clear from the low vacancy rates in the city center, where properties are snapped up quickly.
Properties in Glasgow's city center are often rented out within a week or a month, showing just how high the demand is. This quick turnover is a testament to the city's appeal and the strong rental market.
With a vibrant lifestyle and a robust job market, Glasgow continues to attract young professionals, ensuring that rental yields stay consistent in the city center.
Sources: Glasgow City Council, ESPC, ESPC, CaliberCo
17) City center property prices will rise moderately as urban living becomes more popular
Property prices in Glasgow's city center are on the rise, driven by a growing demand for urban living.
Glasgow's Southside is a vibrant neighborhood that's attracting young professionals, families, and students. Its cultural and recreational appeal, along with excellent transport connectivity, makes it a hot spot for those seeking a lively urban experience.
The city center's population has seen a significant increase, growing by a third from 2011 to 2022. This aligns with a long-term plan to boost the residential population, aiming for a more sustainable and economically successful area.
Young people, especially those aged 16-44, are showing a strong preference for city center living. This trend is expected to continue, driving demand for housing in the area.
New residential projects like the Barclays campus and Candleriggs Square are making the city center even more attractive. These developments, along with others in the pipeline, are contributing to the population increase.
Government initiatives, such as the City Centre Living Strategy, are focused on revitalizing urban areas. This support is further boosting the trend of rising property prices in Glasgow's city center.
Sources: Rightmove, Home West, Glasgow City Council
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.