Glasgow – affectionately known to Glaswegians as the Dear Green Place – is Scotland’s largest city. The River Clyde geographically splits Greater Glasgow into north and south while its older grand buildings hint at the city’s once global fame as a shipbuilding powerhouse. However, over the past four decades the inner cityscape, including the docklands that once lined the Clyde for miles has been steadily transformed. Today, it’s the likes of tech, banking, major events, retail, mixed-use residential developments and relatively recent infrastructure projects that are helping to future-proof Glasgow’s fortunes for the decades to come.
The big picture
When looking at the Glasgow property market, it’s important to consider the big picture too. Over the past 12 months, macroeconomic and political events, including soaring inflation, rising energy costs, higher borrowing rates and a cost of living crisis have all impacted on Scotland’s residential housing market. Glasgow hasn’t been immune from these effects and in my opinion, it’s a brave person who makes steadfast predictions for the year ahead!
However, as independent experts in our sector, the Home Report Company believes the challenges of 2023 still offer great opportunities for buyers and sellers alike. Certainly, my many years of advising clients have underlined one constant truism – sellers will always wish to aim high and buyers will wish to aim low.
Looking at the Scotland-wide property market, data from the UK House Price Index reveals that the average price of a property in Scotland in November 2022 was £191,492 – an increase of 5.5 per cent on November 2021. Compared to the previous month, house prices in Scotland also decreased by 1.2% between October 2022 and November 2022.
The Glasgow property market
When looking at the Glasgow property market, it’s important to recognise the Greater Glasgow conurbation of over 1 million inhabitants captures several local authority areas. So while I’ll primarily focus here on the City of Glasgow, buyers and sellers alike should also consider the market in East Dunbartonshire – that includes the affluent towns of Bearsden and Milngavie; the upmarket town of Newton Mearns seven miles south-west of Glasgow city centre in East Renfrewshire and the opportunities north-eastwards in North Lanarkshire.
According to the latest figures from the Registers of Scotland House Price Index (November 2022), the City of Glasgow recorded a 7.1% annual price change between November 2021 and November 2022, with properties over that period rising to an average of £175,038. Over the same period – and five miles north of the city centre in East Dunbartonshire – properties achieved an 8.1% rise to £271,621. In East Renfrewshire average property values rose by 8.8% to £294,420. North Lanarkshire, which meets the NE edge of the City of Glasgow local authority area and includes the towns of Cumbernauld, Motherwell and Airdrie recorded an 8.6% rise in average property prices to £138,607.
To return to the macroeconomic points I made earlier, some analysts predict the Scottish housing market could see house prices lose up to 5% or even 10% in value this coming year. But keep in mind that even this latter figure would see you as a homeowner having likely still achieved a significant increase in the value of your property over the past 5 years.
Statistics can be interpreted in different ways but as a conservative estimate, my analysis of the market in Glasgow indicates an average selling price of around £200,000. Moreover, 2-bedroom properties are particularly in demand. If you are in the market for a flat, you may be looking at an average of just over £165,000. Conversely, a detached family home in Glasgow’s trendy west end or in an affluent area of Greater Glasgow could value well in excess of £450,000.
Like any city, there can be significant variations in price value depending on the location. For example, while a one-bedroom flat in trendy Merchant City and close to Strathclyde University may value in excess of £190,000, a short walk further east, north or south and you may find a one-bedroom flat for significantly less.
While as I previously noted, the market is unlikely in the coming months to see the large price increases of the past two years, I do still anticipate many sellers will achieve in excess of the Home Report valuation, with many parts of Glasgow and surrounding local authority areas achieving brisk selling times of around 3 weeks.
Glasgow in 2023
Across all property types, I anticipate a slight softening in prices in the early part of this year. However, in many cases, sellers of flats and detached homes alike can expect to secure above the Home Report property valuation.
First-time buyers – many of who will face higher mortgage rates – should think carefully about location. If your budget is tight but you still wish for ease of commute into Glasgow’s city centre – consider outlying areas like the popular east end community of Dennistoun and Maryhill to the north of the city centre. If you have more flexibility, values generally hold up well in the cosmopolitan west end areas of Byres Road, Dowanhill and Partick.
If you seek a larger detached family home and have a budget that can stretch to £350,000+, consider looking at parts of the south side of Glasgow and into East Dunbartonshire. In Glasgow, areas like Jordanhill continue to command a premium due to certain streets being in catchment for the local well-regarded secondary school. Equally, families will look to locations like Bearsden for the school catchment and its ready access to the great outdoors. However, take note that according to Zoopla over the past 12 months, the average sold price of a home in Bearsden was over £413,000 with detached homes selling for an average of over £600,000.
Arguably, demand still outstrips supply in many parts of Glasgow and adjacent local authority areas. Consequently, I expect quality homes will continue to attract competitive prices. However, this coming year may also see some landlords sell off some of their property portfolios due to rising interest rates and changes in government legislation. Time will tell but this could potentially provide more housing stock for first-time buyers.
Get a Home Report from Home Report Company
As a seller in Glasgow or anywhere in Scotland, getting a Home Report early in the selling process is the ideal way to prepare and reassure your potential buyers. Read our expert guide to learn more about Home Reports and what documents are included.
If you have any questions about buying or selling property or would like to ask us for more information give us a call 0131 608 0175 or email info@homereportcompany.co.uk.
