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Edinburgh's Property Investment Hotspots

Updated: Feb 3

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Edinburgh remains a place where, remarkably, you can still comfortably purchase a property for less than £160,000 for a 1 bed property and less than £200,000 for a 2 bed property in areas extremely popular with young professionals and still easily walkable to the town centre.


Quite something if you consider this is Scotland's Capital city.

Edinburgh is ambitious and confident of its future. It really does operate as a financial micro-climate that tends to buck the trends of the UK market in uncertain times. Demand outstrips supply and rental returns are high.

Edinburgh boasts renowned gems in areas such as Stockbridge, Morningside and Bruntsfield. But traditionally, due to higher property values in these districts one may only expect rental yields of up to 5%.

However literally seconds away from these areas lie a number of central enclaves that boast charm in bucketloads with huge potential to see significant capital appreciation as regeneration turns them into destinations in their own right. The largely young professional demographic make them ideal places to confidently buy investment property - and all still only a short stumble home from the town centre.


Leith


Leith Shoreline Edinburgh Investment Property Hotspot
Leith Shoreline


Leith lies at the Northern Edge of the city centre, stretching from the top of Leith Walk at the new multi million pound St James Quarter Development in the heart of the city centre, all the way down to the River Forth and the vibrant shore area. More a whole separate town than a village enclave, yet sat directly next to the city centre.

Affectionally held in high regard by Edinburgh’s residents, Leith is Edinburgh's most diverse area - not unlike Portobello Road in London - where working class tenements sit amongst large sprawling townhouses and fabulous green areas. Not to mention the stunning shore area.

A foodies’ paradise with 3 Michelin starred restaurants and a a multitude of charming bars and coffee shops make Leith immensely popular with young professionals, students and tourists alike.

The area is without doubt one of the the most exciting areas of regeneration in Scotland's Capital City. Traditionally undervalued considering its proximity to town and quality of housing and amenities, Leith is currently experiencing the construction of the Edinburgh Tram network extension, connecting Leith with the town centre, and all the way out to Edinburgh Airport. This artery to the rest of the city has seen the streets become a cosmopolitan mix of hipster bars and outdoor seated cafes with shiny new housing developments.

Average Price for 1 Bed property: £145-165k

Average Price for 2 Bed property: £190-220k

Average Yield: 6% plus



Leith Tram works Edinburgh Investment Property Hotspot
Current tram works on Leith Walk (estimated completion summer 2022)

The massive St. James Quarter development at the top of Leith Walk - due to open 2021


Developments around Lochend Park - only 5 minutes walk from Easter Road and extremely popular with renters

Broughton/Cannonmills



Cannonmills Edinburgh Investment Property Hotspot
The charming Cannonmills Clock by the Water of Leith


Sat next to Leith on the way back into the town centre lies the once overlooked Broughton/Bonnington/Cannonmills ‘corridor’. Green lit for massive regeneration, this area borders The New town and irresistible Stockbridge, indeed roughly a short 10 minute walk into the centre of town.

Essentially an overspill of Stockbridge , running alongside the Water of Leith, the area has just a hint of Leith’s street cred alongside the swagger of high-end town centre living. A stones thrown from the Edinburgh Botanic Gardens the areas is ripe for a huge rise in valuation on the back of the massive high-end developments currently rising up along the water of Leith.



Bonnington Edinburgh Investment Property Hotspot
One of the many new Bonnington area developments springing up on the Water of Leith

Average Price for 1 Bed property (Bonnington end): £160-185k

Average Price for 2 Bed property (Bonnington end): £210-230k

Average Yield: 6%

Dalry/Haymarket

Haymarket Edinburgh Investment Property Hotspot
Haymarket at Haymarket station

Over on the other side of the town centre, still only a 10 minute walk from Princess Street, lies Haymarket Station (Edinburghs secondary rail hub). Now the site of a multi million pound mixed use development the area will see the construction of a 45 room Hotel etc etc.

Moving just seconds west we find Dalry Road, a commuters dream on the doorstep of Edinburgh’s central west end business district, and home to a vibrant collection of cafes, bars and restaurants.

Again ridiculously cheap considerings its proximity to the City Centre -the area is extremely popular with young professionals with its mix of new build and traditional tenement property.



Dalry Edinburgh Investment Property Hotspot
Dalry

Average Price for 1 Bed property: £160-180k

Average Price for 2 Bed property: £200-220k

Average Yield: 6%

Fountainbridge/Polwarth



Fountainbridge Edinburgh Investment Property Hotspot
The beautiful Union Canal at Fountainbridge

Again only a 10 minute walk from the City Centre, to the South of Dalry, lies the rapidly regenerating, hugely popular Fountainbridge. Anchored by the Fountain Park Entertainment hub with its cinema and restaurants, and flanked by the wealth of new developments coming up along the union canal, Fountainbridge lies alongside the residential area of Polwarth. Often affectionally named ‘Bruntsfield West’ (!) by its residents due to its proximity to the highly desirable neighbouring Bruntsfield, Polwarth features tree lined streets with high quality, turn-of-the-century tenement buildings, all serenely placed along the Union Canal - a charming iconic waterway that dissects Edinburghs Western districts.

Polwarth is a classy enclave and a smart investment.



Polwarth Edinburgh Investment Property Hotspot
The classy tenements at Polwarth

Average Price for 1 Bed property: £160-180k

Average Price for 2 Bed property: £200-230k

Average Yield: 6%

Gorgie



Gorgie Edinburgh Investment Property Hotspot
The ever popular Gorgie Road

Moving along Dalry Road from Dalry and a stones throw from Fountainbridge lies the ever popular, Gorgie. Still the best choice for slightly lower purchase budgets, Gorgie lies to the South of Murrayfield (home of Scottish Rugby). A main strip flanked by attractive tenement buildings, Gorgie attracts young professionals and first time buyers alike. Well served by the pubs and restaurants of its sister districts, Gorgie still feels like it has room to grow in identity. It is only time before the hipster cafes and bars arrive.

Always a solid popular investment in Edinburgh which traditionally achieves great yields

Average Price for 1 Bed property £140-155k

Average Price for 2 Bed property £185-210k

Average Yield 6% plus.



Gorgie Edinburgh Investment Property Hotspot
Stewart terrace, Gorgie

For more information on local hotspots or just to have a chat through your requirements please don’t hesitate to contact us here, or you may want to talk to Umega Lettings who can advise you further on rental expectations.

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