Glasgow: Scotland’s New Property Powerhouse
Glasgow’s historic indicators of progress — its first bridge, university and canals — have endured. Today they remain places where the city’s residents want to live and where investment is planned over the next five years.
Some things, however, are set to change. According to a residential forecast report published last week by the commercial property company JLL, Glasgow house prices will surge 17 per cent by 2021.
Researchers say the increase is due to rising demand, a lack of new-build developments and fewer buy-to-let properties.
A report issued by Savills analysed how Scotland’s most populous city will benefit from investment. The Future of Glasgow’s Real Estate revealed that a number of areas will emerge as property hotspots, because money put into commercial ventures will create a ripple effect on the residential market.
Glasgow’s economy has grown by 9.9 per cent since 2012, outstripping the Scottish average of 8.4 per cent. The city continues to enjoy investment secured by the Commonwealth Games in 2014, and while growth is set to fall to 7.2 per cent by 2021, regeneration of unloved areas and proposals for high-quality offices, leisure and cultural enterprises will be good for residents.
“There has been a surge in activity across almost every aspect of the city’s real estate, whether it be infrastructure investment, housing demand or commercial and industrial activity,” says Bruce Patrick, the head of commercial and mixed-use development at Savills.
Charing Cross, between the West End and the City Centre, has benefited aesthetically from recent upgrades to social housing. This was a fashionable district in Victorian times, but towering postwar office blocks and crumbling tenements have tainted its skyline. However, murmurs of plans to create a public garden over the M8, and luxury housing means it is tipped as the next property hotspot, catering for spillover from buyers priced out of the West End. The neighbouring Park district, which has a number of upmarket developments overlooking Kelvingrove Park, is also set to undergo further regeneration.
Partickhill and Partick have also been earmarked for investment. The University of Glasgow’s expansion is predicted to create new academic and research accommodation. The potential for a mixed-use development, comprising a hotel and private homes similar to the plans for Merchant City, is hoped to attract a wide range of backers.
As the Western Infirmary is redeveloped, attention will be focused south of the university. By comparison, Partickhill and Partick will represent high-amenity, well-connected areas.
“The building blocks are in place for Glasgow to reaffirm its position as Scotland’s powerhouse, competing with Leeds and Manchester.”