Edinburgh Property Market Update

Q1 2025: Strong Start to the Year

Edinburgh Castle and Skyline

As we move into spring, the Scottish property market—particularly in Edinburgh—has delivered a strong performance in the first quarter of 2025. Whether you’re considering relocating staff or exploring investment opportunities, it’s worth understanding how the landscape has shifted compared to this time last year, and how Scotland stacks up against the rest of the UK.

A Strong Quarter for Edinburgh

The residential property market in Edinburgh saw continued momentum through Q1, with average selling prices climbing to £304,064—a 6.8% increase year-on-year. Certain central hotspots, including Stockbridge, Old Town, and Tollcross, experienced even sharper rises, with average prices reaching £352,568, up 11.7% from Q1 2024.

Sales volumes have also risen by 4%, despite a modest dip in the number of properties coming to market. Buyer demand remains strong, with nearly 70% of homes selling at or above their Home Report valuation. The median time to sell held steady at 32 days, though faster-moving areas like Gorgie and Dalry saw properties snapped up in as little as three weeks.

Glenfinnan Viaduct

Scotland vs the UK: Edinburgh Out in Front

On a broader scale, average house prices across Scotland increased by 2.4% in Q1—comfortably ahead of the UK-wide figure of around 1%. Edinburgh continues to outperform both Scottish and UK averages, driven by strong local demand and consistent appeal among first-time buyers and investors alike.

Notably, first-time buyers made up 36% of all property transactions in Edinburgh and the Lothians, indicating a healthy and active market segment even amid higher interest rates.

What’s Driving Market Confidence?

Although the Bank of England base rate remains at 4.5%, expectations of rate cuts later this year are providing a boost to buyer sentiment. In Edinburgh, in particular, demand has held up remarkably well, underpinned by the city’s strong employment base, excellent quality of life, and its enduring status as a desirable relocation destination.

On the rental side, the market is beginning to stabilise after several quarters of intense pressure. A 35% increase in available rental properties has helped ease supply issues, bringing rental inflation down to a more manageable 4.8%.

What This Means for Businesses and Relocation

For companies considering relocating staff to Scotland, Q1’s figures paint a compelling picture. Edinburgh offers both stability and long-term growth potential in the property market, making it a smart choice for professionals and families alike. With property selling quickly and demand remaining high, early planning and local insight are more important than ever.

At 29Twelve, we help businesses navigate the logistics and stress of staff relocation with expert support and local knowledge.

If you are moving, or moving talent into Edinburgh or the wider region, get in touch—we’re here to help your people feel at home, fast. info@29twlve.co.uk