If you currently find yourself looking at Aberdeen as a potential city to invest in, then look no further. In this article, we’ll discuss everything you need to know to help you understand what makes Aberdeen a good place to invest in property; we’ll also discuss some of the issues that have affected the city over recent years to help you get a well-rounded representation of what you can expect.
Let’s get started.
Property Value in Aberdeen
The best place to start when it comes to understanding whether or not to invest in property is to take a look at the numbers. At the time of writing, the current average asking price for property stands at £184,970.
To put that into perspective, the most recent data available for the average house price in the UK is £284,691.
We’ll save you the mental arithmetic; it works out to around £100,000 less than the UK average. For many people living in larger cities in the UK, it’s unheard of to even consider purchasing property at less than the asking price, never mind the UK average.
Of course, the price of property does differ by the type of property. Let’s take a look below:
Property prices by property type
Based on recent data, the following is the asking price by property type:
- Flat £116,222
- Terraced £198,960
- Semi-detached £229,434
- Detached £445,773
Looking at the prices by property type, it’s clear to see that flats contribute significantly to the overall property price in Aberdeen. This is because there is a higher quantity of flats available in Aberdeen, especially those available for sale in comparison to other property types. Interestingly, semi-detached and detached properties have asking prices similar to other cities above the UK, so although the average price may be higher than the UK average, they are still cheaper compared to other major cities.
Rental yields
The majority of investors looking to purchase property in Aberdeen will be most interested in the expected rental yields. With that considered, here are the current property rent asking prices in Aberdeen by type:
- Room £445 pcm
- Flat £944 pcm
- House £1,572 pcm
With that considered, Zoopla has also included Aberdeen in its top ten highest-yielding areas for buy-to-let properties in the UK, recording the city with an average gross rental yield of 745%.
Job opportunities
It’s important to understand everything that Aberdeen has to offer, and that includes the job opportunities. This is because the stronger the local economy, the higher the chances of success when it comes to buy-to-let properties.
Aberdeen is quite a unique city in that the majority of the local population is employed by the oil and gas industry. The proximity to the North Sea is one of the major reasons for this, along with many large companies setting up their headquarters in the city. As a result, many white and blue collar industries related to the oil and gas industries thrive here.
Similarly, the digital and technology industries are also in high demand in the city. At the same time, health care and education are also popular, as is the case in many other cities.
Amenities
While Aberdeen may be a smaller city compared to others in the UK, there are still plenty of amenities. Families have the opportunity to indulge in recreational entertainment at parks and cinemas while also enjoying educational attractions like the Aberdeen Maritime Museum. Meanwhile, adults can enjoy a vibrant social scene with over 50 bars and clubs, including notable spots like Siberia Bar, CASC, and Murdos Bar Aberdeen. Meanwhile, the older generation can enjoy a balance of fitness and cultural activities, from heated indoor pools to golf courses like Kings Links and Hazlehead Pine. In essence, Aberdeen is a city that caters to the interests and lifestyles of all types of people.
Transport
Aberdeen boasts a well-connected public transport network that is well connected by road and rail. This provides an affordable and accessible means of commuting. For those preferring private transport, you will be pleased to know there is a well-maintained road network that offers smooth traffic flow. However, you can expect busy rush hour periods as with any other city.
Additionally, Aberdeen also has its own airport, which provides access to over forty European destinations.
Universities
Aberdeen is also home to two distinct universities, the University of Aberdeen and Robert Gordon University. With a large student population, buy-to-let properties in Aberdeen can cater for student tenants while they complete their education. As a result, there are always students in the city looking for accommodation.
Quality of life
If you’re looking to invest in property and consider living in the city, quality of life is an important factor to be aware of. However, you won’t need to worry. In the past, Aberdeen and Aberdeenshire at large have been explicitly recognised for having the highest quality of life in Scotland.
When it comes to quality of life, housing access and affordability are high on most people’s priority lists. It’s usually one of the biggest financial strains for many people. However, as we’ve mentioned above, Aberdeen has quite a low average property price compared to the national average, and there are usually quite a few properties available to choose from.
Cost of living
Now, we’ve already covered rent and property prices, which are significantly less than the national average. However, what about other costs?
According to Numbeo, here are some of the average prices for essential items that you can expect:
- Internet – £30 a month
- Gas, water, and electricity costs for an apartment – £280 a month
- Public transport – £85 a month
Property Trends in Aberdeen
As we’ve covered above, property prices are much lower than the national average, and there is a great rental yield in the city. However, this hasn’t always been the case. In 2022, headlines reported that Aberdeen was the worst place in the UK to invest in property. This was because the average property price in the city had actually decreased. In contrast, at the time of writing, recent data indicates that just in the last year, asking prices for property increased by 7%. This is an indication that sellers have noticed increased demand and are, therefore, increasing prices.
So, although property prices are still much lower than the peak of £266,000 as recorded in 2006, there is a good opportunity to purchase property at a lower price and enjoy the rental yields that they deliver.
FAQS
Is Aberdeen a good investment for property?
At the moment, with property prices being much lower than the national average and so returning a high rental yield, it makes for a great opportunity to invest in property.
Will house prices in Aberdeen go up?
Although nothing is certain when it comes to property prices, Aberdeen is quite unique. Property prices are already quite low and are nowhere near the peak seen almost twenty years ago. That itself is pretty unheard of for many cities in the UK. So, there is a good chance that with the right developments taking place, the only way is up for Aberdeen.
If you find yourself looking to cash in on a property but struggling to find buyers, we can help. Here at We Buy Any Home, we act as cash house buyers, enabling you to sell your property quickly and easily and still at a great competitive price. Get in touch to find out more.
Why is property so cheap in Aberdeen?
One of the major reasons as to why property is cheap in Aberdeen is simply because the major reason many moved to Aberdeen in the first place was for the oil and gas industry. As many companies have since shut down or moved elsewhere, the city has been affected. This reduced demand for property translates to reduced property prices.
Is Aberdeen up and coming?
Aberdeen is a city that witnessed a great boom in previous years, but recently, it has struggled. With that considered, Aberdeen City is by no means giving up and has announced over recent years multi-million-pound plans in developments that include revitalising beaches, building sporting venues and a new city market. The only way is up, so Aberdeen will definitely continue to improve as a whole.
