Research article

Lack of supply supporting price growth in Greater Glasgow

Demand will continue, bolstered by a growing economy

Greater Glasgow includes the city area of Glasgow and commuter/ suburban areas across neighbouring Dunbartonshire, Lanarkshire and Renfrewshire.

Glasgow has experienced economic growth and development in recent years, bolstered by a growing and young population, and business growth in high-tech and service sectors.

These are exciting times for the city, where Barclays have broken ground on the new Buchanan Wharf campus development on the Clyde, which will house their technology, functions and operations team. Once completed, the campus will accommodate up to 2,500 additional staff.

As we enter the spring market, we anticipate more stock coming on the market

Savills Research

Glasgow is the largest retail centre in the UK outside London, and its music, food, sport, and education offering confirms the city’s reputation as a highly desirable international destination.

Despite growing demand, housing supply is intermittent. Current availability is 8% lower than last year, which explains the lack of movement in transactions between 2017 and 2018. Meanwhile, average monthly house prices in Greater Glasgow grew annually by 5% during 2018. Moreover, the Savills Prime Index for the city area of Glasgow increased by 3% during the final quarter of 2018 compared to 2017.

As we enter the spring market, we anticipate more stock coming on the market. But a significant spike in applicants and viewing activity will continue to put upward pressure on values.

Market exceptions

Whilst the overall market lacked transactional growth, some price bands bucked the trend. The market above £800,000 saw a remarkable performance, with 89 transactions in 2018 compared to 71 in 2017. This figure was the highest since 2008. The majority took place in Glasgow’s West End and Park and also Pollokshields and Newlands in the southside.

Figure 3

Greater Glasgow market above £800,000 As the wider market remains stable, high-end transactions have increased
Source: Savills Research

Activity above £800,000 also increased in the suburbs of Bearsden, Milngavie, Bothwell and Thorntonhall. However, high-end transaction numbers remained unchanged in the suburbs of Giffnock and Newton Mearns. Meanwhile, more attainable new build supply boosted the markets between £200,000 and £400,000 in the commuter locations of Lanarkshire and Renfrewshire.

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