The north-east has a habit of doing the opposite to the rest of the UK economically. Chris Ion, of Graham + Sibbald, highlights opportunities in a “hot” property development market.
Aberdeen and Aberdeenshire comprise a unique market in the UK, with their prominent focus on energy production.
This creates ongoing employment opportunities which, in turn, lead to greater demand for housing and commercial property, compared to elsewhere across the country where markets are currently flatlining.
Did financial crisis bypass Aberdeen?
Aberdeen is not immune to economic issues, of course, but it has been argued the city is a part of the UK which could potentially buck the economic recession.
It was reported to be “largely unaffected” by the financial crisis in 2008 and experienced a boom period in the years that followed, buoyed by high sustained oil prices.
Presently, the competition sees housebuilders struggling in a market so hot with activity that developers either have a confident finger on the pulse or are being priced out of the central belt entirely.
The purchase of both land and property for development is increasing in demand, and we are seeing smaller or more niche development opportunities being considered by developers to keep a foothold.
Housebuilders are seeing greater demand for family homes, despite the current economic worries, as families continue to rebase their needs post-pandemic.
But rising construction costs and labour supply shortages are having an impact on property prices, with buyers stretching savings to their maximum.
The commercial investment market is following a similar trend of exciting activity and it begs the question, will Aberdeen be counter-cyclical once again?
‘Idyllic’ Stonehaven
Graham + Sibbald recently brought to the market a unique development site in Stonehaven.
It extends to 0.53 acres, situated approximately 262ft from Stonehaven harbour and within a conservation area.
This popular coastal town is in an idyllic location, with a population of around 11,150.
In 2018 it was named as one of the five most beautiful towns in Scotland.
At a guide price of £250,000, excluding VAT, the development site would constitute an infill location in terms of policy P3 (infill and householder developments within settlements, including home and work proposals) of the adopted local development plan.
We are also currently marketing a prime Aberdeen west-end development opportunity, Richmondhill House, which comprises a detached granite building and former nursery.
A hidden gem, with a total site area extending to 0.55 acres, the subjects boast an impressive Grade C listed building, built in the mid-19th century.
Arranged over three stories and a basement, the property has kept many original period features.
Priced at £800,000 – excluding VAT – for the heritable interest, the site is situated within an area zoned for residential property.
The purchase of both land and property for development is increasing in demand, and we are seeing smaller or more niche development opportunities being considered by developers to keep a foothold.”
Interested parties are invited to submit an inquiry to Aberdeen City Council to find out more.
These two quite unique development opportunities are located within a local economy which has the potential to ride out the next period of economic uncertainty better than most.
Chris Ion is a director of chartered surveyors and property consultants Graham + Sibbald and leads the firm’s commercial team in Aberdeen.
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