Estate agents operating in Aberdeen and surrounding areas have given their predictions of whether property prices will rise or fall in 2025.
The Aberdeen housing market saw a mixed period throughout 2024.
Higher mortgage costs, the cost-of-living crisis and an uncertain economic outlook all had an impact.
During the last quarter of 2024, the average selling price of detached homes in Aberdeen fell by almost £5,000 to £320,715.
But what does 2025 hold?
We asked local property experts working in Aberdeen and the surrounding area for their predictions.
Deborah Bonner – Gilson Gray
Prediction: Prices up 1-3%
“2024 ends on a high for Aberdeen’s property market.
“Changes in mortgage rates and the outcome of the general election enabled buyers and sellers to crack on with their plans and we have seen positive movement across the city and shire.
“The standout trend is the success of well-presented properties with clean home reports, regardless of their type – whether it is a flat, country cottage or house in town.
“While it is difficult to predict exactly how the market will perform next year, we can expect more of this momentum.
“Prices should increase moderately, somewhere between 1-3%, for well-maintained properties in desirable areas.
“However, homes that would typically attract private landlords in the buy-to-let proportion of the market may not see the same growth. Scotland’s Additional Dwelling Supplement (ADS) tax rising from 6% to 8% is likely to impact investor enthusiasm and have a knock-on effect for the valuations of flats and some smaller houses.
“Valuations may also be influenced by the sale prices of other properties in the nearby area, particularly if any sell below home report.
“Overall, the sentiment is optimistic, and people will always have reasons to move house, regardless of wider influences on the market.”
Faisal Choudry – Savills
Prediction: Prices up 1%
“An easing in mortgage rates has led to an improvement in residential transactional activity across Scotland, with Aberdeen city slightly outperforming.
“The annual number of recorded transactions increased by 3% during the 12 months ending October 2024, compared to the 12 months ending October 2023.
“The improvement in Aberdeen city transactions was supported by both the second hand and new build market, especially in the sought-after AB15 postcode, which includes the city’s West End, Cults, Bieldside, Countesswells and Kingswells.
“Elsewhere, the city’s northern areas of Bucksburn, Stoneywood and Danestone, southern AB12 postcode which includes Charleston and central AB11 and AB25 postcodes also saw an uplift in transactions this year.
“Aberdeenshire hasn’t had the same overall uptick in transactions that was witnessed in the city over the last 12 months.
“Whilst Aberdeenshire’s second hand market remained stable, constrained new build supply led to an overall -4% drop in transactions during the 12 months to October 2024.
“Areas that bucked the trend include Westhill, Stonehaven, southern Kincardineshire, Fraserburgh and Banff.
“Looking forward, I expect Scotland mainstream house prices to increase by 5% by the end of 2025 as mortgage rates settle and the economy picks up.
“I expect Aberdeen area prices to remain sensitive, with an increase of 1% by the end of 2025 due to ongoing stability in the level of available stock.
“Aberdeen’s housing market will be underpinned by its economy which is expected to grow by 10% over the next decade.
“This will be led by the professional, scientific and tech sectors, the health sector, education sector and information and communication sectors.”
Laura Considine – Aberdein Considine
Prediction: Prices up 2-3%
“The outlook for 2025 is more positive after a stop-start year in 2024.
“We have seen a 10% increase in transactions in the third quarter of 2024 compared to the second quarter of the year and 20% more transactions compared to the same quarter last year.
“The Aberdeen property market is an improving picture and increased activity should result in a positive movement in prices for many areas in 2025.
“We are seeing people put bigger deposits into purchases to get better mortgage rates and we expect this will continue.
“Interest rates will continue to fall albeit slower than previously contemplated.
“Places in Aberdeenshire showing improvements in house prices include Ellon, Inverurie, and Stonehaven
“In Deeside we continue to see a good number of buyers from all around the world often looking for a slower pace of living or to pursue an outdoor hobby and I don’t see this changing in 2025 even in light of the increase in the Additional Dwelling Supplement from 6% to 8%.
“Throughout 2024, we noticed people waiting to see what would happen hoping interest rates would come down and that meant the year didn’t get going as well as we hoped.
“However, I would say, during the autumn period and particularly since the budget we have seen a marked increase in buyer confidence and we have also seen a further base rate reduction, which has helped with mortgage rates.
“These two things seem to have made a difference in the property market, and we ended the year with a strong pipeline of sales, which is quite unusual.
“Normally, in November and December, things slow down as people are looking toward Christmas, and that has been very different in 2024, which is encouraging and certainly bodes well for 2025.
“Prices, particularly in Aberdeenshire and Aberdeen remained fairly low in 2024 as a result of the slower buyer activity.
“This is not altogether bad news as it helped some buyers get on to the property ladder but as the activity levels continue to improve and the number of transactions increase I anticipate a small increase in prices by approximately 2-3 % next year.”
Annie Littlejohn – Raeburn Christie Clark & Wallace
Prediction: Prices up 1-2%
“The Aberdeen market saw a gradual increase in volume over 2024, although the price increases have remained modest, and it is anticipated this trend will continue in 2025.
“Price pressure remains at the lower end of the market as there is still a high number of flats available for sale.
“Whilst that may be good news for first time buyers, Â it remains to be seen whether the Additional Dwelling Supplement increase will further stifle any increase in sales as prospective landlords are put off from entering the market.
“Prices and sales at the middle and top end of the market have shown signs of improvement, as interest rates have settled and there is an increased availability of mortgages.
“Properties that are ready to move into are still proving more popular than those that require additional funds to upgrade.
“Our view is that there will continue to be an increase in volume of sales next year, with an expected increase of around 1-2% in prices.”
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