Aberdeen Area Residential Market

Aberdeen Area Residential Market
 
The wider local economy

23 November 2016, by Faisal Choudhry

The market will be underpinned by a diversified local economy

 

Oil: Having dropped from $110 a barrel in May 2014 to its lowest point of $30 in January 2016, the global oil price now sits at $46. Consumer confidence is likely to improve if oil reaches $60 a barrel, and experts suggest that it is likely to settle at around $70 per barrel, the 15-year average.

Employment: Although most energy operators are implementing redundancies and pay freezes to achieve a more sustainable future, overall salaries in Aberdeen City continue to remain among the highest in Scotland. The planned decommissioning of some North Sea operations will provide a boost to the economy in terms of job creation. Fishing, shipbuilding, tourism, the city’s two universities and nine specialist hospitals are key employers. Initiatives to transfer skills and technologies into electronics and research are being accelerated.

Development: The north east of Scotland has been allocated £504 million of the UK Government’s City Deal funding over the next 10 years to improve infrastructure and attract jobs. The planned exhibition and conference centre is expected to contribute an additional £113 million of visitor spend. The new Aberdeen Western Peripheral Route, improvements to train connections and the £20 million redevelopment of Aberdeen Airport will further improve connectivity.

The planned expansion of Aberdeen Harbour, aimed at supporting marine and offshore sectors, has been identified as Scottish Government ‘national priority’. The Aberdeen City Centre Masterplan includes around 50 projects, with plans to attract 3,000 new residents which could bring an additional £17 million per annum into the local economy.

Quality of Life: Aberdeen has been rated 10th in the 2016 Good Growth for Cities Index, which measures the performance of 42 UK cities. A sustained period of prosperity has meant that there has been considerable private and public investment in local amenities and the city boasts high quality housing, schools, universities and leisure facilities, including retail, hotels, bars and restaurants.

 

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