Scotland’s real estate market is starting to stage a comeback, with price growth for both cottages and prime country houses. Rich foreign buyers have helped lift the country’s real estate sector out of a long slump, but the road to recovery for the whole Scottish property market remains long. See the following article from Property Wire for more on this.
The values of prime Scottish country properties has risen for the first time since the end of 2007 but are still 18% below the market’s peak, according to the latest figures to be published.
The average price of country houses increased by almost 1% over the past three months with properties in the Lothian and Borders area showing the biggest rise in values, the Knight Frank Scottish Country House Index shows.
The number of houses for sale is increasing but vendors still need to be realistic about pricing, the report points out. It also says that interest from wealthy overseas buyers in this sector is still strong.
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‘After nine quarters of falling or static prices it is encouraging that the value of prime Scottish country houses has at last started to pick up. An average rise of almost 1% in three months may seem modest, but it will give potential buyers and vendors the confidence that the market has now hit the bottom and is starting to slowly recover,’ said John Coleman, head of country house sales at Knight Frank Scotland.
But he predicts that the recovery will be gradual and it will be at least three years before prices start to return to the levels that were last seen before the banking crisis hit Scotland. ‘It is also worth noting that values have not started to recover in every region of Scotland and continue to fall in some. Correct pricing is key and overpriced properties are attracting little interest,’ he added.
Leading the recovery is the Lothian district around Edinburgh and the Borders where prices have increased by 1.3% over the past three months, while those in Argyll are up by 2% on average.
In terms of property type, the recovery has been strongest for properties at both ends of the market. Cottages gained 2.4% in value in the second quarter of 2010, while large country houses rose by 1.4%.
Coleman said that there are still significant numbers of inquiries from overseas buyers looking for the kind of trophy properties that only Scotland can deliver. ‘Even though Sterling has started to recover some of its value against the Dollar and Euro, some of the phenomenal properties we have on our books offer amazing value to the world’s wealthy elite,’ he explained.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.