Scotland’s million-pound home market continues to thrive in Edinburgh despite the worldwide economic slowdown. Recent housing market reports show that some 87 houses were sold in Edinburgh for £1m or more in the year 2008 up until October 2008. This is slightly less than back in 2007 when a total of 112 houses were sold but considering the current worldwide economy these figures are still sound.
Industry experts think Edinburgh’s market stays largely unaffected by the crunch because of the higher market. Luxury buyers above the million pound mark usually have enough funds to ride out a bad market and equity buyers are favoured over the rest.
2009 should see a more conservative market according to Jamie Macnab, of Savills. This is a result from combined executive losses and redundancies leading on from the collapse of Lehman Brothers in October. Many buyers choose to sit tight and wait before they rush into the market.
Edinburgh has enjoyed good growth over the last few years with increases of up to 15 percent. However, realistically this type of growth won’t be sustainable in the current economy. Considering the last slow down has been 20 years ago, this isn’t surprising nor too worrying.
Yesterday’s interest rate cuts are also said to favour the market over the next few months with many properties changing hands.
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