Property Investment Ideas
Market Comparisons: Dalry vs Gorgie, Edinburgh
Deciding where to invest in Edinburgh buy to let property can be a challenge, as there are a number of factors to consider. If you’re new to the area, it’s worth starting from the key transport links and working your way out from there. Commuting distance is a major factor for tenants, along with price.
Edinburgh is a highly connected city, which makes choosing a place to invest a little trickier than most destinations. Gorgie and Dalry are prime rental locations in the heart of Edinburgh’s inner city.
The area sits within easy access for students who attend Heriot-Watt University, Napier University and Edinburgh College’s Sighthill campus. This makes it very attractive for this group compounded by the fact that it is easily accessible to the city centre and to Edinburgh Park making it very accessible to jobs.
This location is also great for sports fans with Tynecastle and Murrayfield Stadium focal points in and around the area. The Corn Exchange also offers great sports facilities with football pitches and a Nuffield gym, Pure gym are also in the area.
Exciting new developments are occurring in the area with Embankment West providing new luxury housing as the area’s regeneration continues. Springwell House adds to the portfolio with a lovely conversion to residential in an excellent location.
Slateford Gait is another area that began ten years ago but has expanded and offers excellent inner city living, with 2 beds consistently reaching the £1000 PCM mark. With demand as high as it is, being able to sell a house fast in this market is also growing increasingly likely.
The area is probably the best served in the city transport wise with multiple train, tram and bus routes passing through Haymarket which is now a key transport hub for routes throughout the city and beyond including easy access to the airport by bus or tram.
There is a large selection of shops in the area catering for all needs. Asda, Sainsburys, Scotmid, Lidl and Aldi all have shops nearby. There is also a diverse range of shops along Gorgie Road and Dalry Road and a small retail park in Slateford.
It’s actually very common for people to consider Gorgie and Dalry as the same area, however, there are some significant differences.
One of the standout differences is the market rates for sale, with one-bed properties in Dalry ranging between £149,000 and £225,000 in asking prices, compared to Gorgie with properties at between £110,000 and £145,000. Gorgie also holds a much larger amount of stock, with over 70% more one-bed apartments for sale than Dalry.
Dalry is considered to be an ideal location for residents, with excellent connectivity to Haymarket Train Station and the West End of Edinburgh. It is also a much shorter walk to the city centre, compared to Gorgie.
Dalry as a location is much more idyllic, with Gorgie appearing slightly more tired - and lived in. Gorgie does however benefit from the same arterial route in and out of Edinburgh with multiple bus routes and easy access out of Edinburgh as well as into the city.
With a shortage of supply in Dalry, where people might initially prefer to rent, demand is very strong in the much larger residential area of Gorgie where flats are clearly more affordable for investors. The average rent between the two is very similar as a result, with Dalry only 3% higher at £726/month compared to £702.
The key conclusion after looking at the data available from the two locations is that through careful and thoughtful selection it’s highly possible to find a profitable investment in Gorgie. When looking at the Upper Quartile of rents, which usually indicates how the better quality properties are doing, they both achieve £750 in monthly rent.
As a result of the high demand and significant cost difference between Dalry and Gorgie, we’d recommend seriously considering Gorgie as an investment opportunity. Getting the right flat, in the right condition, could promise a far greater yield than Dalry.
Why not speak to Clan Gordon today to discuss investing in this area.