Your Guide to Property Investment in Glasgow
It’s a modern European city that’s vibrant, historic, artsy and cool. It has a thriving economy at the cutting edge of emerging industries, not to mention its huge student population. Transport links are great and the city has bags of regeneration happening across its diverse quarters. If you’re thinking of investing in rental property, Glasgow has plenty to recommend it. It’s also bigger and cheaper than Edinburgh with plenty of affordable properties in the right areas.
We examine just why Glasgow has the edge when it comes to property investment opportunities.
Employment
Once a ship-building heartland that suffered from post-industrial decline, Glasgow has reinvented itself over the past few decades as forward thinking and modern. The UK’s fourth biggest economy, it is a centre for sectors including education, finance, IT, health and life sciences, creative industries and low carbon technologies.
Amenities
As Scotland’s largest city, with a strong heritage in the arts and music – from Charles Rennie Mackintosh to Primal Scream – Glasgow is a city with plenty going on. There’s amazing nightlife, cafe culture and great shopping – Glasgow has one of the UK’s biggest shopping centres as well plenty of independent high streets in its diverse neighbourhoods. Glasgow also has lots of green space, plus it’s a stopping-off place for Scotland’s stunning Highlands.
Transport
Built on a grid system, Glasgow is easy to navigate. Its transport system is good too, with plenty of trains, buses, cycle routes and the so-called ‘clockwork orange’ tube system.
Universities
When it comes to universities, Glasgow has three of them, with a combined student body of more than 60,000. Glasgow University has its campus in the West End; Strathclyde University and Glasgow Caledonian University are both pretty central. There are popular student areas, serving all campuses, across the city including in the Southside and East End. Glasgow University has plans for a new tech campus in Govan.
Why invest in property in Glasgow – the figures
Capital investment
According to Land Registry data, average property prices in Glasgow have been gradually increasing. In February 2022 the average property price was £165,805, which is 9% up on the previous year and 27% up on the previous peak of £130,438 in August 2007. So, now could be a good time to buy if you’re thinking of long-term capital growth.
This compares to an average of £315,000 in Edinburgh and around £530,000 in London (February 2022), making it a much more affordable bet than these other major cities.
Rental yields
Average rents in the city are currently £972 per month, according to CityLets, and have risen steadily over the past decade. Rental yields in the city vary, but average between 4.5% and 7%.
Choosing an area to invest in Glasgow
Glasgow has a range of areas to choose for your investment, depending on your budget and target market. You can read more in our blog – What are the best areas of Glasgow for property investors?
For a quick overview, the West End is lovely, leafy and popular with families and young professionals alike. You’ll pay more for property here, but check out areas on the fringes such as Garnethill, Yorkhill and Partick.
The East End is the grittier ‘real Glasgow’ and more affordable but with trendier neighbourhoods such as Dennistoun (rated the eight coolest in the world, by Timeout).
The Southside is the city’s industrial heartland where you’ll find cheaper properties but some areas of deprivation. However, it has benefited from major regeneration and is home to sought-after neighbourhoods such as Shawlands, which makes it into The Times’ best places to live in 2022.
Good to know
If you’re new to investing in property in Scotland there are a few things you need to know as taxes and regulation are different to England and the other UK nations. You’ll pay pay Land and Buildings Transaction Tax (LBTT) instead of Stamp Duty on your purchase, for a start, and you’ll need to register as a landlord before you rent the property to tenants.
If you’re considering investing in property in the West End of Glasgow, we are a local estate agent with plenty of experience of the market. Call us today to discuss your project and we’d be happy to advise.
