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Why property investors should consider buying in Dundee

If you’re a property investor, you’ll probably be looking for areas where capital gains are strong and the prospects of selling a home on quickly are good.

If you decide to rent out the home you’ve invested in, you’ll be seeking areas where yields are high and rental income is steady, reliable and consistent.

Well, if you’re thinking about purchasing a home as an investment, there are few better places than Dundee, which has seen the second highest growth in asking rents outside London in the last decade.

According to Rightmove, between 2008 and 2018 the average asking rent in Dundee has risen by 40%, only bettered by Dartford in Kent which has seen rents grow by 41% in the same time period.

Why buy property in Dundee?

When it comes to investing in property in a given area, the first question you will quite rightly ask is: why this location?

Dundee, one of Scotland’s largest and best-known cities, has plenty going for it – not least a fine coastal location and easy access to some stunning countryside.

The fourth largest city in Scotland, it is home to a thriving student population thanks to the University of Dundee – one of the UK’s leading universities in science, medicine, engineering and art.

It’s also a place seeped in history, having built its name off the production of jute and jams (with a special focus on marmalade). Dundee and marmalade are, in fact, still synonymous to this day.

What’s more, it’s long been a hotbed for journalism (DC Thomson, publishers of The Beano and The Dandy, was founded in Dundee in 1905 and is still a major employer today), while the city is also known for its two football teams, Dundee FC and Dundee United, and the hotly-contested derby matches between them.

An area of regeneration

Dundee is a city that has attracted significant investment in recent times, allowing it to emerge from its post-industrial slumber. The decline of the jute industry in the 1920s left Dundee in the doldrums for a significant number of years, but in recent times it has reinvented itself as a major culture, tourist and leisure venue. 

As well as the redevelopment of Dundee’s historic waterfront – with disused buildings making way for luxury new abodes – there is substantial investment being ploughed into the city’s transport links, visitor attractions and hotels to improve its appeal as a location to visit, enabling it to compete with better-known rivals such as Edinburgh and Glasgow.

The V&A Museum of Design Dundee – housed in a ‘world-class building’ on the banks of the River Tay – is set to be the jewel in the crown of Dundee’s new waterfront. The £80 million building, the first ever design museum in the UK to be built outside London, is set to open its doors on September 15 2018, and will host a number of major exhibitions.

The museum forms part of the £1 billion redevelopment of the waterfront, with a number of restaurants, retailers, businesses and hotels set to complement Dundee’s outstanding cultural venue. Some 7,000 new jobs are set to be created once work on the waterfront has finished.

That means, as well as a significant student population looking for rental homes, the new jobs and cultural opportunities being offered by Dundee’s regeneration will attract many young professionals, culture enthusiasts, designers, artists and creatives, all looking for either places to rent or buy.

If you’re investing in a property to sell it on quickly, the high demand for homes that Dundee is set to witness in the coming years could influence your thinking.

If you’re investing in property to rent it out, meanwhile, the city’s large student population and increasing appeal to a young workforce seeking flexible living arrangements should help your chances of letting rental homes with ease.

Prices in Dundee on the up

If you’re a property investor looking to invest in homes that are likely to go up in value, or a seller thinking about listing your property on the market soon, you’ll be pleased to see that house prices in Dundee have been on an upward curve for a while now.

Research by the Bank of Scotland last year found that house prices had risen in the city by more than 16% in five years, while other research found that prices were rising twice as fast as the rest of Scotland – up by 5.5% in the second quarter of 2017.

The most recent figures suggest this trend is continuing, with average prices in Dundee soaring by almost £20,000 in less than 12 months. Between October and December 2017, the average price of a Dundee home rose from £126,440 to £143,096.

So, whether seller or investor, Dundee is a location that is currently likely to bring you big rewards.

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 Dundee and Aberdeen 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.