IN NUMBERS: Developer confidence in Aberdeen has started to wane as fears over oil price falls rattle the market.
Planning applications in the Granite City grew last year at the slowest rate since 2010 as the market reacted to plummeting oil prices, according to data from EGi’s Planning Research launched at last night’s Aberdeen Question Time.
The slowdown follows a meteoric rise in interest from developers with the number of applications in Aberdeen trebling in the past decade compared to a 28% rise in Scotland and a 9% rise in the UK overall.
In total 430 applications were lodged in Aberdeen in 2014, with nearly half in residential and industrial properties.
Average rents fell in 2010, although headline levels were maintained albeit with improved incentive packages for tenants, following a crash in oil prices the previous year.
“History teaches us that Aberdeen’s property market follows the price of crude oil and tracks it closely in a way not seen in the rest of the UK,” said Rebecca Wood, EGi’s head of planning.
