Why Glasgow’s property market has so much stability

by Gordon Campbell

March 2025

We were born and live in Glasgow, so we know Glasgow and the market intimately and know the right areas to invest.

We share our 46 years’ experience, knowledge and expertise as landlords and investors with you.

It is very important for our investors to know, apart from offering highly attractive properties, why we continue to offer properties in Glasgow and why we continue to be supremely confident in what we do.

There has to be a strong and stable social and economic environment for that to happen, so here are the important fundamental reasons.

Fundamental Reasons

Glasgow, the UK’s 4^th largest city, continues to be recognized as a stable and attractive destination for property investment, bolstered by several key factors:

Our blogs we are regularly sharing the continual rise in the overall property market in demand for properties to buy and rent in Glasgow.

That will not change.

House prices and rents will continue to rise as they have done since the begging of time.

All of that is underpinned by the strong foundations and diversification that Glasgow has and continues to make it very unique within the UK.

Why?

1. Robust Education System

Scotland’s esteemed education system, featuring world-renowned institutions like Glasgow University, one of the oldest in the world, consistently attracts international students and academics.

Glasgow has 5 universities and many other specialised colleges eg maritime and business.

2. Strong Employment Market

Glasgow boasts a resilient job market, with employment rates ranking among the highest globally.
As of December 2024, the unemployment rate stood at a low 3.8%, reflecting a stable economy that supports workforce participation.

As an example, Glasow is the second largest financial market is the UK, as specialist employers have a wide and diverse pool of talent from the education system.

This robust employment landscape enhances the appeal of property investments, as a secure job market underpins demand for housing.

3. Respected Legal Framework

The Scottish legal system, one of the oldest in the world, set many of todays standards used throughout the world.

It is internationally acclaimed for its fairness and transparency, providing a secure environment for property ownership and investment.

This reputation attracts investors from regions seeking stable and predictable legal protections, such as the UAE and Saudi Arabia. In 2024, the UK was ranked second globally for its legal system, underscoring its commitment to upholding property rights and contractual agreements.

4. Advanced Infrastructure

Significant and continual investments in road, rail, airline and new high tech infrastructure, ensure seamless movement across the country.

For example, getting from North to South Glasgow or East to West Glasgow only takes 20 to 30 minutes.

5. Strategic Geographic Location

Geographically, Glasow benefits from its proximity to both European markets and transatlantic trade routes.
Its compact size and dense population mean that few areas are isolated, enhancing the stability of property values across regions.

This strategic positioning makes the Glasgow a hub for business and commerce, further boosting the attractiveness of its property market.

For example, there is now flights from Glasgow to Dubai every day. A new route to Beijing being announced and cargo flights already in place to Hong Kong.

Edinburgh airport has flights to Dubai and Qatar daily.

6. Safe Haven for Investment

Scotland and Glasgow properties offer consistent returns and capital appreciation. There is a high attraction to the many high end, quality and attractive located properties available, from country estates, castles to the always in high demand buy-to-let properties.

Glasgow is well known with investors as the Buy-to-Let capital of the UK.

In summary, the UK's combination of a strong education system, robust employment market, respected legal framework, advanced infrastructure, strategic geography, and reputation as a safe investment haven continues to underpin its stability and appeal in the property investment landscape.

7. Resilient Housing Market

The Glasgow market has demonstrated resilience even during economic downturns.

While house prices may fluctuate in response to interest rates and inflation, the long-term trend remains positive.

Even during the 2008 financial crisis and the COVID-19 pandemic, property prices rebounded quicker and fastest than any other UK city and also compared to other global markets.

In 2023 and early 2024, house prices have remained strong despite economic uncertainties, showing that demand continues to outstrip supply.

8. High Demand and Low Supply

One of the key factors driving stability in the Glasgow and other UK large cities property market is the imbalance between housing demand and supply.

The country faces an ongoing housing shortage. Government housing targets have not been consistently met, meaning that demand remains high, keeping property values strong.

The new UK Labour Governments ambitious target for new housing has got zero chance of being met. The cycle will continue and increase.

9. Strong Rental Market and Rising Rents

For Alliance Property Group buy-to-let investors, the properties we sell rental continues to provide the best returns you will probably find in the UK.

We offer properties of a minimum 11% yield and up to 18%.

These are yields local investors can only dream of.

With a growing population, high mortgage rates limiting affordability for first-time buyers, and an influx of international professionals and students, the demand for rental properties remains robust.

10. Political Stability and Investor Confidence

Despite political challenges in recent years, including Brexit and leadership changes, the UK remains a politically stable country compared to many other nations.

The Scottish and UK government continues to support property investment with policies that encourage growth in housing and infrastructure.

Additionally, Glasgow remains a key financial and high-tech hub, attracting businesses and international investors who seek long-term stability.

11. Attractive Mortgage and Financing Options

The UK offers a variety of mortgage products, including buy-to-let and interest-only mortgages, making it accessible for both domestic and international investors.

Even with interest rate fluctuations, lenders continue to offer competitive financing options, ensuring that property investment remains viable for many buyers.

Finance for our international investors in Scotland does happen on a regular basis. Everyone’s situation is different and what current rates are available depends on various factors, but finance post initial purchase is available.

12. International Appeal and Migration

Glasgow and Scotland remains one of the top destinations for skilled migrants, students, and professionals.

The continued influx of people moving to the Glasgow keeps housing demand high.

The UK Home Office’s visa programs for skilled workers and international students ensure that the Glasgow continues to attract talent, which directly supports rental demand and property prices.

13. Government Investment in Regeneration Projects

The Scottish government continues to invest in major regeneration projects, which boost local economies and increase property values.

Projects like the Glasgow City Deal (click link to open) initiative that is committing over £1 billion pounds to the Glasow and surrounding regions, has made Glasgow ranked the top city in Europe for strategy in attracting overseas investment. https://www.glasgow.gov.uk/article/8334/Glasgow-ranked-top-city-in-Europe-for-strategy-in-attracting-overseas-investment (click link to open).

This is another example why Glasgow has significantly increased the desirability for both homebuyers and investors.

They are benefitting from billions in infrastructure and urban development funding, making them attractive alternatives to London for property investment.

14. Pound Sterling as a Stable Currency

For international investors, the UK remains an attractive investment destination partly due to the strength and stability of the British pound (GBP).

The GBP has remained relatively strong despite global economic uncertainties, making UK real estate a safe asset class for foreign investors looking to hedge against inflation and currency fluctuations.

Final Thoughts

We have looked at many other cities across the UK to invest in personally and at other property strategies.

Glasgow is without doubt always a main driving force in the UK economy and with its diversification, social, economic and cultural rich seams makes it highly attractive location to live, study, invest or visit.

Glasgow’s combination of a strong education system, robust employment market, respected legal framework, advanced infrastructure, strategic geography, and reputation as a safe investment haven continues to underpin its stability and appeal in the property investment landscape.

As always, if you ever wish to have a informal chat in how we can help you start or add to your portfolio, we would be happy to help.

Thank you for reading.

Gordon and James

Alliance Property Group. Making a Difference