Aberdeen Property Market Update
Aberdeen, the Energy Centre of Europe and home to the UK’s oil and gas industry, was undoubtedly affected by the crash in oil prices a few years ago, but recent findings suggest that the city’s property market is starting to recover.
Recent research found that property prices in Aberdeen have grown for the first time in more than two years, with the average value of a home rising to £200,832, a 0.1% increase year-on-year. While only a modest increase, it was also the first year-on-year rise since 2015 – when Aberdeen’s oil and gas industry suffered job losses as a result of the global oil market’s volatility.
More promisingly, Aberdeenshire as a whole saw transactions jump by 2.1% and 5.7% in the second and third quarters of 2017, with hope that this momentum will continue throughout 2018. Although any price rises are expected to be gradual rather than sudden or spectacular.
A recovery in oil prices has boosted property prices in the area, with an increased number of properties sold for over £500,000 indicating that confidence in the buyers market is returns to Aberdeen.
As well as the more stable oil prices, new contract awards and new drilling activity, there are a number of key infrastructure projects in progress that are expected to boost demand from all kinds of property buyers.
One of the largest infrastructure projects in Scotland the Aberdeen Western Peripheral Route (AWPR), aims to improve transport links in the north east of the country. The construction of the new Aberdeen Exhibition and Conference Centre (AECC) is hoped to help the city to continue ‘to attract large and popular events and secure a bigger share of the conference, exhibition and concert market’.
In addition, the development of Aberdeen’s new harbour area and the recently confirmed relocation of Aberdeen FC to its new Kingsford stadium are both expected to boost the local economy and make the city an even more attractive place to live and work, bringing in new investment, jobs and tourism.
According to PrimeLocation, the average property price in Aberdeen stood at £221,546 in January 2018, up by 1.9% since October 2017. Research also suggests buyer confidence is on the rise, increasing hopes that a sustained recovery in 2018 is on the cards.