Dundee’s housing market has got off to a slow start this year, but there are reasons to be positive.
But there are reasons for optimism in the long-term, according to Chris Stark, director in the Dundee office of surveying firm DM Hall.
While the market is off to a slower start, that may be due to the “slightly manic market” of previous years.
He said the city is a “fantastic place” to live and work.
Mr Stark said: “While the prices being achieved over home report valuations may not be as stellar as in 2021 and 2022, there is still a high demand for the limited stock available.
“Good properties are shifting off the shelf as quickly as they ever did.”
The cost-of-living crisis and rising interest rates have had an impact, Mr Stark added.
“What might have seemed affordable for many people a year ago may now be out of reach,” he said.
“Add energy costs into that mix and it’s hardly surprising some people are choosing to err on the side of caution.”
Dundee’s ‘bright’ long-term prospects
While Mr Stark said interest levels in properties vary, he expects things to improve as the year continues.
He said there were reasons to be optimistic for the long-term future of the city.
Those include the Eden Project and Esports Centre.
“There are signs of encouragement.
“While we’re not at the stage of last year where there were countless buyers for every property, there is a reported increase in interest and activity, compared to the last two months.
“Dundee’s prospects are looking bright.
“There is a feeling in the air that it is coming up with a momentum that has years to run, backed by generous funding and welcome outside investment.
“For a small city in UK terms, Dundee certainly has a lot to offer.
“Its housing stock is mixed enough to provide opportunities for a wide variety of buyers.”
‘Exceptional’ rental demand in Dundee
Mr Stark said properties in Broughty Ferry continue to do well. He said other areas such as Dykes of Gray and Birkhill have become more popular.
This may be as a consequence of the pandemic-inspired rush to be closer to the countryside.
Even previously-overlooked areas such as Fintry and Douglas have experienced a surge in popularity.
Flats around the city centre are also performing well and demand for rental property is “exceptionally high”, Mr Stark said.
He added rental prices for all types of properties have been rising steadily throughout the last few years.
Family homes in more residential areas within the city and on the outskirts have again seen record prices.
Bungalows are also popular, though there has been a slowing in the popularity of new-build properties.
Mr Stark added: “As expectations return to more sustainable levels, Dundee will continue to do well, even with a less crazed market environment.”
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