Property investors looking to make a bang for their buck should consider buying in Dundee, a new survey has suggested.
The research by Zoopla named the city seventh best for sellers looking to get a return on an investment.
It analysed urban areas across Britain, excluding London, to find out where investors could get the highest returns — weighing up how the cost of properties against the potential rent landlords could expect to generate.
Rochdale took the top spot, with an average 9% gross yield based on house and flat prices against average monthly rent.
Glasgow was the only Scottish city to rank higher than Dundee in third, with a gross yield of 7.96%.
Dundee’s gross yield, the profit before taxes and expenses, is 6.68%.
Local estate agents agree the Dundee scene is in a boom period, adding that the past half-year has been particularly buoyant.
Ron Campbell, director of Dundee lettings and estate agent Northwood, said: “In the past 12 months, and especially the last six or seven months, the momentum has been growing.
“We cover Angus, Perth and Perthshire and Fife, but I am reallocating resources to Dundee to cope with the demand.
“Dundee covers all the markets. A first-time investor can enter the Dundee market for as little as £50,000 and see a 10% return on that investment.
“And there are plenty of options around the £250,000 bracket. That will see a smaller return as a percentage, maybe about 5%, but that is still a healthy return.”
He said there had been a growth in the popularity of new builds in the last five years, while more traditional tenements in areas such as Dens Road and Blackness Road are falling behind.
“This is the best time of investment we have seen in the last 10 years and continues to improve,” he added.
Nick Horan, director of lettings and estate agents Belvoir, said: “I would certainly say it is on the up. Like everything, it goes through peaks and troughs but Dundee has always been a pretty consistent letting market.
“Sometimes it’s local people buying, but there are also people from further afield such as England and Ireland looking to buy in Dundee.
“The city can sometimes be overlooked by the likes of Glasgow, but those who do their research know it’s a good place to invest.
“And it’s not just the rental market. People buying in an up and coming area can sell their property about five or 10 years later and get quite a return on their investment.”
