Housebuilders spot areas of opportunity

Scotland is starting to see geographical rebalancing

Identifying the next great opportunity is the hallmark of the most successful commercial property investors and developers.

There is, of course, no doubt that the shortage of housing, combined with rising demand, is a source of huge opportunity in Scotland.

We have seen a slew of announcements from developers over the last year with plans to expand housing stock substantially – the biggest challenge possibly being the speed at which they can build.

The residential property market is beginning to experience a geographical rebalancing of sorts, and housebuilders have not been slow in spotting potential areas of growth.

The most recent figures from Aberdein Considine’s Property Monitor, covering the first quarter of 2019, revealed that prices had fallen in both Edinburgh and Glasgow,

In contrast, prices and activity – both in terms of the numbers of properties sold and the value of homes changing hands – had risen in more rural and provincial areas.

One less obvious market that has established itself as one of Scotland’s strongest is East Dunbartonshire.

Clearly a destination growing in popularity, it was therefore understandable that last month Cala Group announced it was building more than 400 new homes on three sites in the area.

Fife has also proved its desirability and ability to provide commuters with value for money, proving to be one of the busiest markets in Q1.

Again in May, we saw work getting under way on the Murray Estates development, Kingdom Park near Kirkcaldy, where the intention is to build over 1,000 homes alongside retail and leisure facilities.

Dundee has continued its economic resurgence, with Balmossie Developments revealing in April that it had submitted plans for an 18-hectare development north of Panmurefield near Brought Ferry, and Kirkwood Homes is also set to add 150 new homes in Linlathen.

Perth also enjoyed significant increases in sales activity, and developers including Barratt, Stephen Homes and Springfield Homes are active in the region.

Not to be outdone, Bellway revealed plans to buy land at the Bindwell development area in East Lothian, which has planning consent for 1,600 houses.

The same firm is also buying land near Winchburgh to build 93 homes, part of the second phase of building in the area that should deliver 1,000 homes by 2025.

Building new developments is a significant commitment, with long-term planning at its heart.

Demand for homes is continuing to grow – and, as the expression goes, it’s all about location, location, location.

Cullross Limited and Caledonia Housing Association with Hadden Construction have begun work on transforming the former Maxwelltown Works on Alexander Street in the Hilltown area of Dundee.

Paul Jennings.