It seems the lure of Scotland’s historic charm, breathtaking landscapes and centuries-old castles is proving irresistible to homebuyers from across the pond.
US buyers have descended upon the Scottish real estate market like never before, snatching up prime properties and leaving their mark on the landscape.
According to real estate firm Savills, American buyers now represent a staggering 4% of total transactions in Scotland’s real estate market, up from a mere 1% in 2019.
This surge in interest from across the Atlantic can be attributed to several factors, but the dramatic drop of the British pound against the US dollar last year was a major catalyst. While the pound has since regained some strength, the property frenzy among Americans endures.
Ricardo Volpi, an agent at Knight Frank, told Bloomberg that a substantial 40% of prime purchases exceeding £1 million ($1.25 million) in the city of Edinburgh were made by buyers hailing from outside of Scotland.
Among these discerning buyers are Londoners, Scots returning to their homeland after working elsewhere, and most notably, Americans on the hunt for historic homes and elegant pied-à-terres in the city.
Volpi points to the heart of Edinburgh, particularly the New Town area known for its Georgian-period homes, as a hotspot for these American buyers.
He’s currently listing one of Scotland’s most expensive properties: an eight-bedroom mansion designed in the Scots Baronial style, boasting 7.8 acres of meticulously landscaped gardens and woodlands, with a price tag of £6 million ($7.37 million).
Edinburgh’s appeal extends beyond its luxury properties.
With its medieval city center, thousand-year-old castle, a vibrant pub and whisky scene, and renowned summer festivals like the Fringe, the Scottish capital is a true gem.
In the realm of tourism, Edinburgh ranks second only to London in terms of visitors.
This burgeoning interest has spurred a wave of luxury hotel openings, including the highly regarded Gleneagles Townhouse and the upcoming 100 Princes Street, operated by the team behind Ashford Castle.
The pandemic has ignited a red-hot market for homes priced above £1 million ($1.23 million), driven by the allure of Edinburgh’s urban amenities and easy access to the picturesque countryside, and green spaces like Holyrood Park and Arthur’s Seat.
From March 2020 to June 2023, the average price of homes exceeding £2 million ($2.46 million) soared by a staggering 32.6%, according to Knight Frank, significantly outpacing the 20% increase in house prices across the UK during the same period, as reported by Halifax.
However, there’s been a recent hiccup as prices have dipped by 1.1% on an annual basis in Edinburgh, partly due to rising mortgage costs affecting the broader housing market.
Max Mills, head of residential sales in Edinburgh for property company Rettie, also highlighted to Bloomberg the deep-rooted family connections that many Americans have to Scotland.
This heritage-driven passion often leads to cash purchases, as these buyers are undeterred by climbing mortgage rates. For many of them, Edinburgh is more than just a holiday destination; it’s a place to establish a second home for festivals, golf and leisurely pursuits.
Golf, a sport with Scottish origins, has a magnetic pull for many American buyers. The renowned courses of St Andrews and Gleneagles beckon, and some well-connected Americans are becoming members of prestigious golf clubs in Scotland, acquiring houses for more frequent links play.
But it’s not just the allure of golf that draws them in. Scotland’s housing market boasts castles whose histories far surpass anything found in the United States.
For instance, Dunbeath Castle, dramatically perched on a cliff above the North Sea, is currently listed for an impressive £25 million ($30.7 million), with Savills handling the sale. The property comes with a staggering 28,500 acres of land and 12.5 miles of river flowing to the coast, its roots tracing back to the 15th century.
While many Americans are venturing into the Scottish real estate market, some are already established.
Notably, Nobel laureate Bob Dylan recently listed his 16-room Edwardian mansion, Aultmore House, located in Cairngorm National Park in the Highlands, for £3 million ($3.9 million) with Knight Frank.
Dylan’s decision to sell is attributed to his decreased use of the property, which he purchased with his brother for £2.25 million ($2.76 million) in 2006.
Jess Simpson, who runs a property firm in England’s Oxfordshire, is witnessing a surge in American clients seeking trophy properties like castles.
Her agency specializes in properties priced at £7 million ($10 million) and above, and has seen a remarkable threefold increase in American buyers in the past year.
Simpson sums it up aptly, telling Bloomberg, “The trifecta for wealthy American clients for UK properties is generally a house in London, an estate in the country — in a place like the Cotswolds — and a Scottish castle or estate.”
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