A wave of optimism before the opening of Dundee’s V&A museum has pushed average property prices in the city to new record levels.
The average price for a home in the City of Discovery is now £142,231 – the highest-ever and up 5.9% compared to last year.
The city is one of just eight local authorities in Scotland to see an increase in house prices over the past month.
The average, however, is still much lower than Scotland’s other three major cities, with Edinburgh sitting at £273,897, Aberdeen at £200,203, and Glasgow at £158,367.
It comes just a month before the opening of the new £80.1 million design museum — part of the £1 billion transformation of the city’s waterfront.
Paul Letley, a director at Pavillion Properties, Dundee’s fastest growing sales and letting agent, said the transformation of the city has started to attract interest from across the world.
He said: “Having worked as a chartered surveyor in Dundee for over 40 years I have never known a time of such optimism and activity in the city.
“There is an air of anticipation in advance of the opening of the V&A next month, of a change in the image of Dundee, and its prospects for future prosperity.
“There is certainly a lot of confidence in the business sector with news of new hotels being built every month, from budget range to full service luxury.
“There are several new trendy restaurants, which would not be out of place in Shoreditch and Chelsea and regular open-air concerts in the Slessor Gardens.
“The Waterfront developments include luxury flats and offices and a state-of-the-art mixed use development of Shed 25 including a restaurant overlooking the proposed marina. It is hard to believe we are describing Dundee.”
Mr Letley added: “With these developments come jobs – people who need to live near their work and want to be located in the rejuvenated city centre where everything is happening.”
David Groundwater, North East Scotland development manager for the Federation of Small Businesses (FSB) said the figures need to be taken in context.
“Traditionally, Dundee has always had much lower prices than other Scottish cities and the latest index still shows Dundee as being the cheapest of Scotland’s seven cities, with an average price of £142,231 compared to Scottish average of £182,163.
“While an increase in house prices can point to signs of a strong local economy, we don’t want to see a position where those looking to purchase in Dundee are priced out of the market by sharp increases.
“Projects like the V&A and wider Waterfront development were designed to have an economic impact on the City and perhaps ahead of the V&A opening next month, we are seeing the early signs of this.”
The council’s city development convener, Lynne Short, said: “It’s a positive for prices to increase. It shows people want to move here and also stay here. Our potential is being realised.”
