A property forecast suggests house prices in Glasgow will grow by 17% over the next five years to 2022. The outlook across Scotland suggests growth of around 10%, under-performing the UK five year forecast of around 12%.
JLL’s residential forecast shows that house price growth in Scotland has averaged 2.9% per annum over the past five years. The analysis projects that Glasgow city centre sales will rise on average 3.2% per annum.
The report said the Glasgow housing market has seen a shift in interest from an almost entirely build-for-sale bias towards an emphasis on build-to-rent. Over a thousand of the 2,500 units in Glasgow planned for residential developments will be build-to-rent.
Rents in Glasgow are also set to grow at 3.2% a year over the next five years.
Jason Hogg, director of JLL’s residential team in Scotland, said: “Although we’re looking at five years of moderate growth across Scotland, the forecasts are somewhat skewed by the continued out-performance of both Edinburgh and Glasgow.
“Glasgow is set for an exciting few years and something of a revolution in housing terms. The Build to Rent sector seems to have dialled-in to Glasgow over the past year and is lining up to dominate residential development activity over the next few years. Not only are there thousands of units in the planning pipeline, but with UK-wide buy-to-rent (BTR) operators behind this drive, the BTR transformation has greater weight, credence and certainty.”