Search Properties

Aberdeen property market update – recovery in full swing

What’s been going on in Aberdeen’s housing market? Time for us to take a quick look, giving buyers and sellers in one of Scotland’s most thriving cities a greater insight into the current state of play.

Property prices start to recover

Aberdeen, the beating heart of the UK’s oil and gas industry, was undoubtedly (and unsurprisingly) affected by the crash in oil prices a few years ago, but recent findings suggest 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 it was 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.

A recovery in oil prices has boosted the area, with the number of properties sold for over £500,000 upped as the feel-good factor returns to Aberdeen.

Assuming oil prices can be sustained, the recovery is expected to continue for much of the year – with particularly strong activity in the next few months. Although any price rises are expected to be gradual rather than sudden or spectacular.

Separate research suggests that year-on-year sales have been recovering steadily following the 2015 downturn, with the Aberdeenshire property market boosted by local buyers, particularly at the top end of the market. Suburban and country properties are most in demand, with these homes often selling quickly.

Meanwhile, 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.

Infrastructure projects to boost local economy

As well as the more stable oil prices, new contract awards and new drilling activity – which is helping to boost Aberdeen’s economy – there are a number of key infrastructure projects already well in motion that are expected to boost demand from all kinds of property buyers.

The Aberdeen Western Peripheral Route (AWPR) – one of the largest infrastructure projects in Scotland, which aims to improve transport links in the north east of the country – is one, while the construction of the new Aberdeen Exhibition and Conference Centre (AECC) is another. In the latter case, it’s hoped the new centre will 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.

A rejuvenated market

Most property experts and observers are in agreement that Aberdeen's housing market is now on the right road, having bottomed out in 2016. The greater stability of the oil and gas industry, continued high demand for homes (especially from first-time buyers), rising buyer confidence and a range of key infrastructure projects offering a boost to the local area, all suggest further steady growth for Aberdeen in the year ahead.

While any optimism needs to be guarded, last year's slight increase in both the value and volume of sales is certainly a promising sign.

As ever, property sellers bringing their home to the market need to make sure their homes are attractive, well-maintained and receiving the right levels of online exposure.

At The Chamber Practice we offer a one-stop shop for property sellers, offering both estate agency and legal (conveyancing) services in-house at our Aberdeen and Dundee offices. 

We can sell your home for a fixed fee of £595 plus VAT, and we also offer instant online valuations to give you an idea of how much your home could be worth in the current marketplace.

For more information about what we do, please contact us at one of our branches.