House Prices Up By 2.3% in Aberdeen

Aberdeen is historically known for its strong ties with the North Sea. Boasting notable fishing and shipping industries as well as a lively cultural scene, the third largest city in Scotland is a multi-faceted area which offers its visitors a broad range of things to see and do. A new report shows that Aberdeen house prices rose by 2.3% in the last quarter and further to this, the annual house price change in Aberdeen city and suburbs is +6.6%.

The annualised house price change over the last five years in Aberdeen city and suburbs is 1.5%. This shows a steady improvement on previous years and a small but significant milestone achievement. In the past year, the city hoped for signs of recovery and possible stability after the Covid pandemic hit the area.

The first half of the year indicated that there were signs of steady improvement, both in numbers of sales and in the prices in general. The third quarter has confirmed that trend with each of the three key indices improving. Starting with the least impressive index, the five-year comparison remains a negative quantity, at -1.5%. The figures for the first and second quarters were however -3.4% and -2.7% respectively. This is very encouraging.

The remaining two indices – quarterly and annual price changes – are also very encouraging, being +2.3% and +6.6%. These indicators do not apply to all sectors of the market, but it has been noted that flats are a sector where it may be a good time to buy.

The number of transactions taking place during the third quarter is also up by 0.8%. This may seem insignificant, statistically, however it was expected that the third quarter would be slightly down, compared with the preceding quarter. Last year was very unusual as it was difficult to read and rely on the figures. This years’ figures however are confirmation that the local housing in Aberdeen is recovering. It is not complete, but things are definitely improving for sellers.

Here are some other reasons to look at Aberdeen as a possible investment area:

Aberdeen is a fast-growing city located in the Aberdeenshire area of north-east Scotland. Aberdeen is Scotland’s third-largest city after Glasgow and Edinburgh and has a population of around 229,000. This is forecast to increase to 268,000 by 2038.

Aberdeen has long been known as the Granite City (or Silver City) due to the large number of buildings build from this type of stone. In recent years it has also been dubbed “Europe’s oil capital”. There is no other city in Europe that has a bigger oil industry. While the oil is extracted out in the North Sea oil fields offshore, the associated support and supply industries are located mostly in and around Aberdeen.

Now being developed as an energy capital, the aim is to create a modern, net-zero economy for the city once the oil industry declines. Aberdeen also happens to be the major service centre for that part of Scotland and also supports the Orkney and Shetland Islands.

The workers of Aberdeen are often considered to be among the wealthiest in the UK, even wealthier than those in London. This is thanks to the high incomes offered by the oil industry and lower living costs. Aberdeen has the lowest unemployment rate in all of Scotland. Both of these things help to support the property market and create more demand for homes to buy and homes to rent in the area.