Scotland’s top-end property market has shown remarkable resilience in 2024, with increased sales despite ongoing political and taxation challenges, according to Savills.
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The market recorded a total of 466 residential transactions, up from 454 in 2023. This growth is driven by strong price appreciation since 2020, which has elevated more properties into the million-pound price band.
Additionally, changes in VAT on private school fees beginning to influence buyer decisions, with families from London and the South considering a move to Scotland for comparatively affordable prime properties and high-quality state education. Meanwhile, demand for well-maintained country houses remains strong, although running costs like maintenance and heating are becoming significant considerations.
Edinburgh leads the surge in million-pound transactions
In Edinburgh, demand for family homes fuelled a 13% rise in million-pound transactions, with notable activity in the inner suburbs of Grange, Morningside, and Merchiston.
Among the most significant sales were five transactions on Braid Road, Morningside, highlighting the appeal of proximity to local services and green spaces. Other active areas included New Town, Stockbridge, Inverleith, Trinity, Ravelston, Barnton, and Cramond, with Inverleith Place, Ravelston Dykes and Whitehouse Road among the most popular thoroughfares. The coastal hotspots of Archerfield, Gullane, and North Berwick led the market in the Lothians.
Glasgow and surrounding areas show mixed performance
Top-end activity in Glasgow and its surrounding areas was impacted by constrained supply. However, Bearsden experienced an uptick in sales, while Kilmacolm achieved a record five transactions.
Million-pound sales remained steady in the West End’s Dowanhill, the Park District, and the suburbs of Lenzie. Continued demand for waterfront properties supported the market along the west coast in Argyll and Ayrshire, with the majority of sales occurring in Ayr, Helensburgh, and the Loch Lomond area.
Scotland's Heartland and North-east see positive trends
The heartland of Scotland saw increased million-pound sales, driven by activity in St Andrews and Elie in Fife, Gleneagles in Perthshire, and Dunblane and Bridge of Allan in Stirlingshire.
The Aberdeen area recorded its strongest market in two years, with notable sales in Bieldside, Milltimber and Rubislaw Den in Aberdeen City, and Banchory in Aberdeenshire.
Meanwhile, the Borders saw steady sales in Melrose and West Linton, despite a dip in the Highland market due to a shortage of good quality homes to meet the ongoing demand for rural lifestyles.
Outlook for 2025
Faisal Choudhry, head of residential research in Scotland, said: “Looking ahead, the increase in buyers registering with Savills last year to purchase prime properties provides cause for optimism in Scotland’s prime housing market. However, the market is not without risks, given increased taxation with higher levels of LBTT/ADS Scottish income tax, changes to the non-doms tax status, and inheritance tax.
“Despite these challenges, Scotland’s million-pound market will continue to be underpinned by demand for family homes in commutable areas and country homes with high specification within reach of major cities. Setting realistic asking prices will be essential for sellers in the year ahead.”
Cameron Ewer, head of residential sales Savills, Scotland, commented: “Analysing the buyer profile in the million-pound plus sector reveals notable trends. Most buyers work in professional and financial services, with 75% already residing in Scotland. The remainder come from the UK and further afield, with London and the South East, Austria, Australia, USA, Singapore, and Hong Kong being among the top locations last year.
"The VAT change on private school fees is impacting property buying decisions. Buyers from London and the South are considering moving to Scotland to purchase prime properties at lower costs, enabling them to allocate more funds towards private school fees. Meanwhile, other families within Scotland are choosing prime properties near high-quality state education over private schooling. This trend is reflected in the increase in million-pound sales in key prime hotspots."
"Demand for country houses, particularly in areas such as St Andrews and Gleneagles remains strong, but running costs like maintenance and heating are becoming significant factors in purchases of larger country houses everywhere, even at the top end of the market."