Look Out for Property Hot Spots in 2005

A slow down in the residential property market in the second half of 2004 has led investors and developers to hunt ever more carefully for areas in Scotland where there will be further growth in prices in the years to come, so called 'hot spots'.

The four-year period ending in June 2004 saw a residential property market boom. Many country properties doubled in value in this period – the combined effect of a period of low interest rates, disillusionment with the stock market and other forms of investment, and interest from the south in second homes and holiday houses. The market is unlikely to collapse in 2005. Properties are still selling and there is a continued stream of viewers for properties presently on the market. However, buyers are behaving more cautiously and we expect the growth in country property prices, which has been running at over 20 per cent per annum in the last few years, to be much more muted in 2005. Hence the search for hot spots where there may be greater than average growth.

These hot spots are often linked to infrastructure improvements in an area resulting in better communications, coupled with good schools and improving facilities. A prime example is North Ayrshire. The M77 road improvements will radically cut commuting times into Glasgow from the south. The countryside around Kilmarnock will be within thirty minutes drive of the city centre.

The area also offers easy access to thriving airports at Glasgow and Prestwick, with regular flights all over Europe and well regarded state primary schools. Houses around Kilmarnock which sold for £200,000 in 2001 and 2002 now realise well in excess of £400,000. Numerous developers are identifying farm steadings for conversion to residential courtyard style properties. Given the value of homes in attractive areas within similar commuting time to the North and West of Glasgow, we expect prices to continue to rise strongly in Ayrshire following the M77 opening this summer. A further rise of 25 per cent in these rural areas may well be feasible in the next 12 to 18 months.

Equally, we expect to see solid growth in the Lothians and the Borders over the next 12 months. The region is much tipped as an increasingly attractive area to live and work, and the prospect of improved transport links, including the possible reinstatement of the Waverley line and ‘Park and Ride’ schemes will further boost demand.

In East Lothian, transport links such as the new A1 expressway from Edinburgh to Dunbar and beyond may fuel the local property market.

Stirlingshire may also fare better than the national average over the coming year as it has started from a comparatively low base and is in the process of ‘catching up’ with its higher value neighbours. Stirlingshire benefits from fast transport links to Glasgow and Edinburgh by road and rail, is proving increasingly popular with commuters, and is one of Scotland’s most scenic counties.

In Fife, transport infrastructure is a controlling aspect of the property market. There are improvements underway to the existing train stations to accommodate longer trains, which should help commuters to Edinburgh somewhat. The Park and Ride scheme at Ferrytoll is very successful and car parking facilities there are to be extended. We expect the property market to respond to these improvements, although slight.

For residential property enquiries, please email: info@ckdgalbraith.co.uk or telephone Bob Cherry on 01292 268181.

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CKD Galbraith is one of Scotland’s leading independent property consultancies, offering a full range of services across the residential, commercial and rural property sectors.

We are a national firm offering unrivalled local knowledge through our offices in Edinburgh, Glasgow, Perth, Cupar, Inverness, Aberfeldy and Ayr and an associate firm in London.

Specialising in quality property and serving the needs of private clients, our consultants have long-established reputations for providing outstanding personal service in many areas including; estate agency, commercial property, rural estate sales and management, building surveying, architectural and building services, holiday cottages and homes, and sporting holidays.

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