According to real estate firm Savills, American buyers now represent a staggering 4% of total transactions in Scotland’s real estate market, up from a mere 1% in 2019. This surge in interest from across the Atlantic can be attributed to several factors, but the dramatic drop of the British pound against the US dollar last year was a major catalyst. While the pound has since regained some strength, the property frenzy among Americans endures.
Ricardo Volpi, an agent at Knight Frank, told that a substantial 40% of prime purchases exceeding £1 million ($1.25 million) in the city of Edinburgh were made by buyers hailing from outside of Scotland.
Among these discerning buyers are Londoners, Scots returning to their homeland after working elsewhere, and most notably, Americans on the hunt for historic homes and elegant pied-à-terres in the city.
Volpi points to the heart of Edinburgh, particularly the New Town area known for its Georgian-period homes, as a hotspot for these American buyers. He’s currently listing one of Scotland’s most expensive properties: an eight-bedroom mansion designed in the Scots Baronial style, boasting 7.8 acres of meticulously landscaped gardens and woodlands, with a price tag of £6 million ($7.37 million).
Edinburgh’s appeal extends beyond its luxury properties. With its medieval city center, thousand-year-old castle, a vibrant pub and whisky scene, and renowned summer festivals like the Fringe, the Scottish capital is a true gem. In the realm of tourism, Edinburgh ranks second only to London in terms of visitors.
This burgeoning interest has spurred a wave of luxury hotel openings, including the highly regarded Gleneagles Townhouse and the upcoming 100 Princes Street, operated by the team behind Ashford Castle.
The pandemic has ignited a red-hot market for homes priced above £1 million ($1.23 million), driven by the allure of Edinburgh’s urban amenities and easy access to the picturesque countryside, and green spaces like Holyrood Park and Arthur’s Seat.
From March 2020 to June 2023, the average price of homes exceeding £2 million ($2.46 million) soared by a staggering 32.6%, according to Knight Frank, significantly outpacing the 20% increase in house prices across the UK during the same period, as reported by Halifax.
However, there’s been a recent hiccup as prices have dipped by 1.1% on an annual basis in Edinburgh, partly due to rising mortgage costs affecting the broader housing market.
