Updated August 2023
Whether you’re looking at buying or selling a property in Glasgow, being aware of the Glasgow house prices, the direction of the market, and the different factors that can affect it is crucial. When equipped with all the knowledge, you can make the best possible financial decision.
In this article, we’re going to compare the price of each property type in Glasgow in 2007 with 2023, and the key factors that play a role in affecting the property market. And lastly, we’ll talk more about whether property prices in Glasgow are expected to dip or continue to rise in 2023.
Glasgow Property Prices: Then (2007) vs. Now (2023)
Over the last two decades, Glasgow has transformed from an industrial city to a thriving hub of culture, commerce, and education. Due to these changes and the staggering rise in career and education opportunities that have become available as a result, hundreds of thousands of people from all over Scotland, the UK, and abroad have relocated and made Glasgow their home.
And as you can imagine, these events have had a very positive impact on Glasgow’s property market as a whole. To give you an idea of what has happened in the property market, we’re going to compare property prices by type in 2007 and 2023. That way, whether you’re looking at a terraced house or a detached family home, you know exactly how much more expensive properties have become over the last two decades.
Terraced Houses
Terraced houses are the most widely available type of property in Glasgow. In 2007, the average terraced house sold for around £161,591. In 2023, the average terraced house in Glasgow sold for around £220,115, which is a growth of 36%.
Flats & Apartments
Flats and apartments are another popular choice of property in Glasgow, especially in the city centre. The average flat or apartment in 2007 sold for £139,032. Those same properties in 2023 are now worth around £172,128, which is an increase of around 24%.
Semi-Detached Houses
In 2007, the average semi-detached home sold for £167,837. In 2023, those same semi-detached properties are now worth around £226,065, which is an increase of around 35%. Please note that semi-detached properties are pretty widespread, and the cost of such a type of home may cost a very different price depending on its location.
Detached Houses
Detached homes in Glasgow saw the biggest increase in price between 2007 and 2023 compared to all other types of properties. In 2007, the average detached house cost £289,624. In 2023, those same properties sold for an average of £407,874, which is an increase of 41%.
Factors Affecting Glasgow’s House Market
As Scotland’s biggest city, there are dozens of factors that can play a crucial role in affecting Glasgow’s housing market. That said, there are four factors that stand above them all, and any significant changes can affect property prices across the entire city.
Interest Rates & Mortgage Availability
Since the average person buys a property via a mortgage rather than in cash, mortgage availability, and interest rates play a big role in the demand for properties. High-interest rates mean less affordable mortgages, which will discourage people from buying. This will lead to the market having many properties for sale without much interest from buyers, ultimately decreasing property prices.
The State of the Economy
From employment opportunities and income to economic growth and consumer confidence – the state of the economy is another big player when it comes to factors that can affect the property market. For example, high unemployment rates or stagnant wages can make buyers more cautious when buying a property.
Government Policies and Regulations
From changes in property taxes to zoning and planning permissions, the government and its decisions can have a massive impact on the housing market and affect it overnight. For example, if the government increases property taxes for landlords, many landlords will throw in the towel and sell their tenanted property due to the lack of profitability. The influx of properties for sale that enter the market will affect the property market negatively, as there will be more supply than there is demand.
Supply & Demand
Supply and demand are key drivers in Glasgow’s property market. The more people that are looking for a property and the fewer properties there are, the higher the cost of properties will be. In turn, if there are more properties available than there is interest, property prices will drop.
Are House Prices Expected to Drop or Rise in 2023?
As per government data and forecasts by experts in the Scottish property market, house prices, on average, are expected to slow down compared to previous years but still continue to rise in 2023. In terms of inflation and recession due to the global pandemic, the city appears to have gone through the storm and is now recovering.
In terms of the property market, we can see this by simply comparing property prices in 2022 with 2023. In the space of 12 months, the city saw its average property price go up from £166,738 to £172,494, which was an increase of 3.5%.
Glasgow’s property market has been reflecting the city’s transformation from becoming an industrial city to a thriving hub of commerce, education, and culture. We can see this by taking a quick look at property prices then vs. now.
What’s more interesting is that Glasgow doesn’t show any signs of slowing down. The city is now developing faster than ever, and more and more people are flocking to Glasgow than ever before. So, whether you’re looking at buying or selling a property and you like the current conditions of the market, it’s essential that you decide on the next steps soon before things take a turn (as is often the case in big cities).
