According to reports, nearly 73% of housing in Glasgow is flats. This is far more compared to almost any other big city in Scotland and the United Kingdom. And due to this staggering statistic, the property most people look to buy is indeed a flat.
So, if you consider buying your first home or are looking to start investing in the Glasgow property market, keep on reading. In this article, we’ll take a look at:
- How flat prices in Glasgow compare to other types of properties in the city
- How Glasgow flat prices compare to flat prices in other cities across Scotland
- A forecast about the future of prices for flats in Glasgow
How Flat Prices in Glasgow Compare to Other Property Types
The average flat in Glasgow regardless of area or size sold for £157,159 over the last 12 months. Though it may come as a surprise to some, flats are actually the cheapest and most affordable type of property you can buy in Glasgow.
In comparison to terraced houses, which have a share of around 11% on the property market, flats are around £50,000 cheaper on average. They are a further £100,000 cheaper compared to semi-detached houses and over £215,000 cheaper than the average detached home in Scotland’s biggest city.
How Glasgow Flat Prices Compare to Flat Prices in Other Scottish Cities
Now that we know the average flat in Glasgow sold for £157,159 over the last 12 months, how do flat prices compare to other major cities in Scotland? Let’s take a look. Without a doubt, if you’re not looking to live in Glasgow, you’d be looking at Scotland’s capital city, Edinburgh.
There, flats cost on average £306,429, which is nearly double the price of flats in Glasgow. There are a few factors why this is happening. For one, Edinburgh is considered a tourist city. It is also the capital of the country, and offers arguably more professional opportunities than Glasgow in areas that offer higher pay on average.
Aside from that, flats in Edinburgh are mostly located in central places and are far and few in-between compared to the flat situation in Glasgow.
If we take a look at Aberdeen, which is Scotland’s third biggest city, flat prices there are a mere £120,893. This is almost £40,000 cheaper than flat prices in Glasgow. The reason for that is primarily because Aberdeen is quite far away from Scotland’s two biggest cities and is the biggest city in the Northern part of Scotland. And lastly, let’s take a look at Dundee – Scotland’s fourth biggest city. There, the average flat over the last 12 months sold for £122,156, which is on par with the flat prices of Aberdeen.
In conclusion, flat prices in Glasgow seem fair. It is a significantly bigger city compared to Dundee and Aberdeen, and the cost of the average flat is just £30,000 more, which is nothing in comparison to the additional £150,000 you’d need to spend for a flat in Edinburgh.
Factors That Influence the Property Market for Flats
The Glasgow flat market is influenced by a range of different factors, which is why prices can move up and down quite a bit when things go right or wrong. Some of the factors that affect flat prices in Glasgow include:
Supply & Demand
Today, Glasgow is home to over 600,000 people. From 2020 to 2021, the level of in-migration to Scotland’s biggest city was 36,400 people, which is a 13.8% increase from the year prior. As of right now, around 40,000 new people migrate to Glasgow to study or seek their new professional opportunity.
And with such a high number of people coming to the city, the demand is sky-rocketing while the supply isn’t. As a result of that, flat prices in Glasgow have seen a steady increase and are now going for around £157,000 on average.
Interest Rates & Mortgages
The lower the interest rates are, the more demand there is for flats that people and investors want to snatch up from the market. As of recent, interest rates haven’t been the best they have ever been, and because of that demand for buying has cooled off, while the demand for renting has increased tremendously.
Property Market Trends
Since nearly ⅓ of the Glasgow population is ages 24 or under, the property market is seriously influenced by the preferences this type of demographic (particularly 18-24) have when it comes to a place to live.
Most young professionals and students prefer to live in flats because they are usually cheaper, easier to maintain, and are in convenient locations. As a result of that, the demand for flats (despite Glasgow being 70+ percent flats) is growing each and every day,
A Forecast on the Cost of Flats in Glasgow for the Coming Years
Before we try to predict the future, it’s important to take a look at the past. In 2004, the average flat price in Glasgow was around £72,000. Ten years later, the average flat sold for around £90,000. Since then, flat prices have been steadily increasing year on year. In May of 2020, the average flat price was £113,000 and since then, flat prices in the city have sky-rocketed to an average of £157,159.
When looking at the past 6 to 8 months, according to the Nationwide’s November House Price Index, property prices fell around 1.4%. Recent data also shows that property prices across the UK were not only slowing down, but they were actually decreasing.
This comes as no surprise considering the current economic uncertainty across not just Scotland but the UK as a whole. So, looking at the next two years, no one is quite sure yet what will happen. Some experts believe that we’ll continue to see prices climbing up while others are less optimistic about flat prices in Glasgow.
Is Now a Good Time to Buy or Sell a Flat in Glasgow?
If you’re an investor, any drops in prices are welcome. Everyone would love to grab a property at a good price right before it starts to climb again. And as we’ve seen property prices slow down and even drop since their peak over the last 12 months, yes, now is a great time to buy. WIth that said, you still need to do your due diligence and make sure you’re making the right decision.
If you have a flat in Glasgow and you’re looking to move on while prices are still high, there hasn’t been a better time to sell on than right now. At We Buy Any Home, we can help sell your flat fast and get you paid in cash as quickly as within 7 days. Get in touch with us today to find out more about how our service works.