Good news for Edinburgh homeowners, but buyers could face being priced out, warn experts.

Edinburgh’s soaring house prices are showing no signs of slowing down, according to property experts DJ Alexander. This comes as no surprise, as Edinburgh has seen a huge 10.2% population surge in the last decade, fuelled by an influx of skilled workers. To put that into perspective, the rest of Scotland only saw a 3.4% increase over the same period.

So, what’s making Edinburgh such a hotspot? The city is a magnet for talented professionals, boasting the highest percentage of high-skill jobs in the UK. In fact, 79.5% of Edinburgh residents are graduates – the highest of any UK city outside of London.

This all adds up to more cash in people’s pockets. The average Edinburgh resident generates £48,300 for the economy each year – a figure experts call “Gross Value Added” or GVA – second only to London.

It’s no wonder that everyone wants a piece of the Edinburgh pie!

Edinburgh House Prices – The Price of Success?

This demand is driving up house prices, with the average Edinburgh property now a cool £327,751. That’s a hefty £136,316 more expensive than the Scottish average of £191,435.

And if you’re after a detached home? Be prepared to shell out a staggering £715,794 in Edinburgh, compared to a still-not-cheap £379,734 elsewhere in Scotland.

Is Edinburgh Becoming Too Pricey?

David Alexander, the boss at DJ Alexander, admits that this success story has a potential downside: “There is an extraordinary difference between the capital and the rest of Scotland and there is a risk that Edinburgh becomes unaffordable for people moving into the city in the future.”

What Can Be Done to Keep Edinburgh Affordable?

Alexander urges action to prevent Edinburgh from becoming a city solely for the wealthy. His suggestions include:

• More Homes for Everyone: Boosting the construction of new homes, including a significant increase in social housing, to meet the rising demand.
• Support for Landlords: Encouraging property investors to provide more rental options for the influx of professionals.

Edinburgh’s Secret Weapon? Space!

Despite its popularity, Edinburgh has a trick up its sleeve: space. It’s actually one of the least densely populated major cities in the UK, which means there’s room to build and grow.

Alexander remains optimistic: “A growing Edinburgh is a positive sign of a growing Scotland and should be welcomed.”

But for those looking to buy in Edinburgh, one thing is clear: be prepared to dig deep.