Prices in Scotland’s capital city Edinburgh surged by 8.9% in March, the highest inflation rate since the end of 2018.
Houses as opposed to flats have driven this growth, Knight Frank analysis shows.
Indeed, since the market reopened in Scotland in June 2020, average house prices have increased by 21.1% compared with 7.8% for flats, boosting the relative value of the latter.
On a quarterly basis, prices increased by 2.5% compared with 1.8% in December, the strongest performance since the start of the pandemic.
Edward Douglas-Home, head of Scotland residential at Knight Frank, said: “Getting yourself in position to make a purchase is key.
“If you are subject to sale then you’re going to miss out as you’ll be competing against people that are ready to go.”
Exchanges in Edinburgh were up 22% in the first quarter of 2022 versus the five-year average and offers accepted increased by 16% as buyers continued to be attracted by the city’s broad appeal, which has attracted buyers from around the UK.
With headwinds such as higher mortgage rates and inflation set to bite in the second half of the year, price growth is expected to slow and finish 2022 in single digit territory.