Investor research by Lismore Real Estate Advisors indicates that 90% of investors would consider investing in Edinburgh over the second half of 2024. The Edinburgh purpose-built student accommodation (PBSA) market is likely to benefit from this potential windfall.
The city’s international appeal, vibrant culture, and strong educational foundation make it a highly attractive investment destination. Respondents also cite its thriving financial and tech sectors, robust rental growth in prime city centre offices, and a resurgent prime retail sector.
Key to Edinburgh’s success is its cross-sector appeal, cited by 32% of respondents as the most important factor for investment into the city.
Over the next six months, 44% of respondents selected living as their most favoured sector for investment with the office, retail and industrial sectors accounting for just under 20% each.
Property companies, funds and private equity investors all favoured the living sector. Competition remains strong for Edinburgh PBSA sites in the city, with demand and supply dynamics continuing to prove attractive.
“Edinburgh remains a vibrant capital city, with a healthy cross sector occupational market provide a compelling investment case.
“Top quality well located city centre offices with strong ESG credentials continue to attract a broad range of investors including UK institutions, overseas pension funds and high net worth individuals, drawn by the city’s global appeal and strong market dynamics.
“With limited development and high demand, prime rents at £45 per sq ft signals healthy growth over the coming years. Strong rental growth is also expected for student accommodation and prime high street retail.
“Edinburgh has shown through good times and bad that it’s key markets remain liquid and with a broad investor base, Scotland’s capital is a serious proposition for any investment decision.”
Lismore Real Estate Advisors
It comes as property development company, S Harrison, has appointed longstanding Scottish construction company, Thomas Johnstone Ltd, to build a new PBSA scheme just off Newington Road, with work starting on the new Edinburgh PBSA scheme in June.
The development, on East Newington Place, has seen an old, disused commercial unit demolished. In its place will be a modern, energy-efficient four storey building with 65 studio rooms. There will also be a multimedia room, gym, break out space, cycle storage and open courtyard.
The scheme has been designed with superb sustainability credentials and it will be heated using air source heat pumps rather than gas.
