Edinburgh is the most attractive place outside London to invest in property, according to new research.
The Scottish capital city pipped Bristol and Manchester to the post in a survey of property investors carried out by YouGov for law firm Morton Fraser’s commercial real estate division.
They were the only three UK regions outside London with a net positive score in the survey, in which 311 investors rated 10 cities as either attractive or unattractive.
Edinburgh scored a positive 24, with 52% of respondents rating it as ‘attractive’ compared to the 28% who found it ‘not attractive’. Manchester was close behind with a net score of 21.
At -40, Aberdeen came at the bottom of the list, after its energy-dependent economy was hit by falling oil prices, as only 16% of investors gave it a favourable rating.
Morton Fraser expects Leeds, Cardiff and Glasgow, to join the top three with positive scores in the coming year. Already, at least 30% of respondents rated them as attractive.
David Stewart, commercial real estate partner at Morton Fraser, said: “When the property crash happened in 2008-2009, it was always going to be the case that London would be the first area which would recover, and as yields compress, it is inevitable that that will spread out to the regions as people look for value elsewhere.”
He added: “Bristol and Manchester have excellent transport links. A lot of people have moved to Bristol thinking they want a London lifestyle without the London hassle. Transport connectivity makes them a desirable business location, and that drives occupier demand and that in turn feeds the investment market.”
| Rank | City | Attractive (%) | Not attractive % | Net investment score |
|---|---|---|---|---|
| 1 | Edinburgh | 52 | 28 | +24 |
| 2 | Bristol | 48 | 27 | +21 |
| 3 | Manchester | 40 | 37 | +4 ** |
| 4 | Leeds | 31 | 42 | -11 |
| 5 | Cardiff | 31 | 45 | -14 |
| 6 | Glasgow | 30 | 46 | -16 |
| 7 | Birmingham | 26 | 47 | -21 |
| 8 | Newcastle | 21 | 50 | -29 |
| 9 | Dundee | 17 | 50 | -33 |
| 10 | Aberdeen | 16 | 56 | -40 |
