The capital city for your capital
Matthew Benson, Director at Rettie and Co., discusses the appeal of Edinburgh as an excellent place to invest your capital.
Key facts:
- Second largest city in Scotland and seventh largest in the UK
- 2.2% unemployment is practically half the Scottish average
- One of the most prosperous regions in the UK
- Second strongest economy in the UK after London
- Cost of living 17% lower than London
- Over 7% population growth in the last ten years
- Higher hotel occupancy than London (77%)
Known as 'The Athens of the North,' Edinburgh's rich architectural heritage - from the medieval 'Old Town' to the classical Georgian proportions of the eighteenth and early nineteenth century 'New Town' - and lively cultural offerings attract millions of visitors from around the globe to the city every year.
Added to the significant contribution that tourism makes to Edinburgh's economy, several other economic drivers as well as an excellent standard of living combine to make the city one of Europe's top investment opportunities and a highly attractive place to live.
Unlike Glasgow, Scotland's largest city, Edinburgh was not built on a strong manufacturing base and so has not suffered the same downturn in its fortunes as manufacturing became a smaller and smaller part of Scotland's economic future. Edinburgh has always had strong service and academic foundations and these two factors have contributed greatly to the city's continuing success.
Edinburgh is the fastest growing city in Scotland and it is predicted to be Scotland's most populous city by 2024. Because of its academic focus - there are four universities in Edinburgh and it has the highest concentration of private schools in the UK - it attracts more 16 to 24 year olds than any other UK city. The University of Edinburgh is one of the UK's top five research universities, with an international reputation for stem cell research and informatics and attracts an international student body. The university sector is itself a vibrant industry, with an annual turnover of £400 million and a student population of over 62,000.
This academic focus also means that Edinburgh has the highest qualified population in Scotland - 32% of its working population has a degree or professional qualification and it has a higher than average 16 to 44 year old population. Recent research indicated that Edinburgh and Manchester were the only two cities capable of joining or even overtaking London, Oxford and Cambridge as academic employers.
Another significant economic driver in Edinburgh is its vibrant tourism industry. Edinburgh is the UK's second tourism destination and around 3.8 million tourists visit Edinburgh every year. Almost 10% of the city's workforce is in tourism-related employment and tourist spending in Edinburgh totals £393 million. Famous for its Festival in August, Edinburgh is in fact a year-round tourist destination, attracting visitors from all over the world.
All of these factors point to a thriving city, capable of long-term sustainable economic growth. Naturally, this also means a buoyant property market, providing excellent investment opportunities at several levels. In contrast to many cities, Glasgow and London, for example, Edinburgh is not a sprawling conurbation - its green belt sets clear limits on new construction and land in the centre is at a premium in an economic environment demanding more and better residential property. In addition, Edinburgh is a designated World Heritage site which imposes rules on the scale and type of construction at the same time as bestowing significant cachet on city centre development that does go ahead.
Of course, Edinburgh has represented an excellent investment opportunity for many years. The market is traditionally more stable than others, such as London, without the sometimes wild fluctuations seen in the South East. According to the latest HBOS figures the Edinburgh market has enjoyed an average 17% growth year on year in the last 10 years with some areas of prime residential property outperforming this significantly.
Comparing it to other cities around the world, it is faring well. In the last quarter of 2006, the average price of a house in the City of Edinburgh was £199,000, a 14% change in the last year, compared to £137,000 in Glasgow, with a 9.5% change and £248,000 in the South East of England, which saw an 8.3% change. Edinburgh performed better than Ireland, Sweden, Canada, New Zealand, Australia, The Netherlands and the USA.
So not only does Edinburgh tick all the economic growth boxes, it is an attractive and vibrant city in which to live, offering much to the investor over the foreseeable future.
For a range of quality property and exciting developments within Edinburgh, (some within the designated World Heritage site) visit the Rettie & Co. website: www.rettie.co.uk
SO NOT ONLY DOES EDINBURGH TICK ALL THE ECONOMIC GROWTH BOXES, IT IS AN ATTRACTIVE AND VIBRANT CITY IN WHICH TO LIVE, OFFERING MUCH TO THE INVESTOR OVER THE FORESEEABLE FUTURE.
Information Sources:
EDI Magazine published by The Financial Times
Edinburgh Census 2001 - City Comparisons Report
Cost of Living Comparisons between London, Edinburgh and Manchester Case for London
Technical Report 3 Executive Summary, GLA Economics
Scottish Graduate Program in Economics
The Scotsman
The City of Edinburgh Council: A Report into the Key Sectors of Edinburgh's Economy
www.visitscotland.com
Capital Review of Edinburgh's Year Round Festivals 200_-5 Economic Impact Study
www.conventionedinburgh.com/press
|
