Edinburgh property within European market tips, Average home price guide, Lanzarote excursions advice
Where does Edinburgh property fit in with the European market?
23 Feb 2023
In 2022, the average price of a home sold in the Lindsay Edinburgh office was £325,000. This was up from £316,000 and makes it the most expensive city in Scotland for property. But, where does this fit within the European countries, and is Edinburgh a good investment in 2023?
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Remote workers in, expats out
Edinburgh, among some towns in the North of England, have seen a rise is property prices because of the pandemic. The shift to working from home has meant that city workers in London, where British jobs are disproportionately located, have been leaving the exorbitant property market for cheaper options.
However, the pandemic had another effect: a disrupted tourism industry at the time of new post-Brexit laws. This means that many of the expat-laden cities around Europe that are popular with Scots have been hit hard.
Canaries
Spain experienced a serious decline in property prices during 2020. This is understandable, seeing as they are one of the most popular expat destinations in the world, and COVID-19 posed an existential threat to that.
However, the Canary Islands were far from the worst performers. And, despite rising interest rates from the European Central Bank, it is expected that Lanzarote will continue being the most sought-after of the islands, as prices rose from EUR 1,691 in 2020 to EUR 1,808 in 2022.
Whether it’s the many excursions in Lanzarote, year-round hot weather, or growing digital nomad community, it’s clear that this is one of the few European places that is experiencing growth in the face of rising rates, inflation, Brexit, and a post-pandemic world.
Flats: Price per square meter
Among the 169 cities in Europe assessed, Edinburgh ranks 53rd on the price of an flat in the city centre. At almost identical prices, Edinburgh is in the company of Madrid, Florence, Barcelona, Glasgow, and Brno.
Price to rent
When it comes to house prices relative to rent, it’s clear that Edinburgh is a city better to buy in than rent compared to most European cities. In the UK, this is drilled into us since children, so it comes as no shock. But, many cities in Germany and Czech Republic make renting favourable, as the price-to-rent ratios are around double Edinburgh.
2023 forecasts
Analysts are predicting that the UK property market will slump 8% in 2023, though some predict far worse. Edinburgh specifically sits in line with these forecasts, as the main factor in the negative outlook affects them equally as much: soaring mortgage rates.
Each year, landlords claim that it’s increasingly difficult to make money from buy-to-lets, and the increasing base rate isn’t making matters any easier. And, whilst the rental market is highly crowded in the UK, buying a property isn’t quite so difficult right now. Though, this isn’t necessarily true in Edinburgh, as a deep housing shortage exists.
Edinburgh property within European market – Final Word
Property prices are expected to fall across the board in the UK which is turning some investors towards European markets like Spain. Edinburgh specifically is likely to see a decline in line with the UK average, perhaps in part because of the already-high price-to-rent ratio. However, being a long way from London prices, the city will continue to be a desirable location for city remote workers moving away from London.
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