Edinburgh Is a Hotspot for Global Property Investment
A new worldwide property investment index has shown that Edinburgh is now one of the top five cities in the world attracting interest from international investors, helped by its growing position within the technology sector.
The Investment Intensity Index compares a city’s current economic size with the amount of real estate investment in a three-year period and places Edinburgh fourth in the world’s top 30, behind just Oslo in Norway, London in the UK and Munich in Germany. Edinburgh was also named as one of the planet’s ‘new world cities’. These 21 locations are said to be redefining the landscape for investors.
The index also measures market liquidity and acts as a barometer of Edinburgh property’s overall health. There is no doubt that Edinburgh has seen its visibility grow within the global investment community in recent years, but making the top five in the list is a major achievement for the city.
There are many reasons for its success, including being a transparent mature market with relatively low development levels. This means that it is not under threat from over-supply, which can dampen growth.
As well as a strong fundamental appeal, Edinburgh also offers a large degree of flexibility in terms of its ability to cater to changing markets, and the city centre boasts a unique ability to accommodate a wide variety of uses for obsolete buildings and land.
Another major factor in Edinburgh’s success is its strong professional-services and financial foundations and its more recent growth within the technology sector. The latter has acted as a springboard to help it become a ‘new world’ location and offer both variety and value to global investors.
The index also saw Edinburgh placed in second in terms of the intensity of cross-border investment. This meant it was just behind London but ahead of the likes of the German cities of Frankfurt and Munich and the Irish capital Dublin.
The city was also just one of three involved in the study which reached a high ranking in the investment intensity top 20 in more than a pair of sectors. The other two were Oslo and Danish capital Copenhagen.
Edinburgh was first in the hotel sector in the index and second in the retail section. It also achieved a 16th place in the top 20 for offices. Previous figures show that global investment in the office market in Edinburgh grew considerably in 2016. In 2014, just 50 per cent of purchases were completed by overseas investors, rising to 62 per cent a year later. This figure reached 93 per cent last year, which is the equivalent of around £331 million in investment.
Are you looking to invest in property in Edinburgh? Call Coulters today, 0131 603 7333 – someone will always be available to help.