Edinburgh residential property market: research and insight on residential values, trends and forecasts
Located north of the Pentland Hills, the Scottish capital boasts a cultural hotspot and thriving economy, adored by locals, investors and tourists alike. Home to the beloved Edinburgh Fringe, the city presents a plethora of leisure and retail opportunities that appeal to buyers and renters. Savills offer a unique contrast of properties across the city, ranging from modern developments to traditional family homes.
Local prices
Prime sales market
Although prime Edinburgh City prices are -1.1% lower than a year ago, there was an increase of 0.4% in the three months to March 2025.
Across the city, appropriately priced flats within school catchment areas are selling well. Family houses are still very popular, but the more discretionary levels of the market remain challenging.
Edinburgh’s average residential transaction price during the 12 months to February 2025 was £336,636, according to Savills Research using the Registers of Scotland. However, prices in Edinburgh’s prime locations, including the New Town, Grange, Morningside and Merchiston were 50% above the city average.
Market activity
Scotland as a whole has witnessed an easing in new instructions so far this year, potentially attributed to wavering seller sentiment, due to challenging economic conditions. Consequently, the number of agreed sales has been lower than last year. That said, the equity-driven prime market between £500k and £1 million has outperformed. However, lower and upper most pricing points remain relatively muted.
Prime lettings market
Across Edinburgh, prime rents are up 1.2% on the same period last year, and increased by 1.1% over the first quarter of 2025.
Demand is strong as the market continues to normalise, following peak growth over the Covid-19 pandemic. However, there is ongoing misalignment between landlords and tenants over rental expectations, and correct pricing remains key to securing tenancies and minimising voids.
Outlook
Looking forward, we expect market sentiment to fluctuate over the short to medium term. As uncertainty surrounding global economic and market conditions is likely to impact consumer confidence, continued price sensitivity is anticipated across the market. Nevertheless, as the Edinburgh City market is dominated by needs-based buyers and sellers and underpinned by a robust economy, we expect the market to remain to resilient, especially for best-in class properties.
Additionally, the prospect of easing base rate cuts have increased the likelihood of a more competitive mortgage market, that will benefit committed buyers. It is important to note, that whilst this should offer some support, it sits on the backdrop sensitive buyer sentiment as well as the need for pragmatic pricing amongst sellers.
Savills Edinburgh track record
Six properties we sold in your area
SOLD
Fairmilehead, Edinburgh
Guide Price £937,000