ABERDEEN is known as the oil capital of Europe and its property market is often influenced by
the oil and gas industry. In recent years, the market has been impacted by the downturn in the
industry and a subsequent decrease in employment opportunities. This has led to a decline in
demand for property in the area, resulting in a decrease in property prices.
Despite this, Aberdeen remains a desirable location for investors due to its strong economy,
high levels of education and relatively affordable property prices compared to other UK
cities. The city has a mix of property types including traditional granite houses, new builds
and flats, which cater to a range of budgets.
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According to the most recent data available from the UK House Price Index (HPI), the
average property price in Aberdeen was £203,276 in April 2023. This represents a decrease
of 1.1% compared to the previous year. However, there has been some regional variation
with some areas of the city experiencing higher demand and property price growth.
In terms of rental market, Aberdeen has traditionally had a strong rental market due to the
high demand from the oil and gas industry. However, with the downturn in the industry,
rental demand has decreased and rental prices have also fallen. The average rent for a two-
bedroom flat in Aberdeen was £719 per month in March 2023, a decrease of 4.8% compared
to the previous year.
Overall, the property market in Aberdeen is influenced by the oil and gas industry and the
wider economy. According to property buyer Ask Susan, while the market has experienced
some fluctuations in recent years, the city remains an attractive location for property investors
due to its strong economy and relatively affordable property prices.
Investors typically look for a range of factors to ensure a good return on investment. Here are
some of the key considerations that investors may look for:
- Location: As with any property investment, location is a crucial factor. In Aberdeen, investors may look for properties in desirable areas that are close to transport links,amenities, and employment opportunities. They may also consider properties in areas that are popular with students, such as those close to the University of Aberdeen or Robert Gordon University.
2. Rental demand: Investors may also consider the level of demand for rental properties in the area, as this will impact the potential rental income. In Aberdeen, investors may look for properties that are in high demand from tenants, such as those close to the city centre or in areas popular with professionals or students.
3. Property type: Investors may also consider the type of property they are purchasing. For example, they may look for properties that are in good condition and require minimal work, such as newly-built apartments or modernized traditional granite houses. Alternatively, they may consider properties that require some renovation work, but have the potential to increase in value once the work is complete.
4. Potential rental income: Investors will also consider the potential rental income that the property can generate. They may calculate the rental yield, which is the annual rental income as a percentage of the property value. In Aberdeen, investors may look for properties with high rental yields, which can be achieved by purchasing properties in areas with high rental demand or by purchasing properties at a lower price.
5. Growth potential: Finally, investors may consider the potential for capital growth of the property. They may look for properties in areas with good potential for growth in property values, such as areas that are undergoing regeneration or have plans for new infrastructure or development. This can ensure that the property increases in value over time, resulting in a good return on investment.
