Fewer Scottish estates sold this year, data reveals

International interest in Scottish estates continues despite the current unstable global economic outlook, according to the latest property report from Savills.

Whilst fewer rural estates have sold this year in Scotland at a lower combined value, prices remained bullish, with competitive closing dates receiving multiple bids.

Some 14 estates sold in Scotland in 2012, with a combined value of £37 million. This compares to 22 in 2011, with a combined value of £86 million. Savills estimate that a similar number of estates could be purchased privately.

At the height of the market in 2008, half of Scottish estate deals were done privately but of the 14 estates sold so far during 2012, all but two were on the open market.

‘Those sellers who went to the open market this year were well rewarded as there have been some spectacularly strong deals done at closing dates, many to buyers who were not in the market in 2011. Recent buyers have included two Europeans, a Chinese businessman and a returning expat,’ said Anna Henderson of Savills.

Savills attribute the reduced number of sales to sellers’ anxiety about prices and the global economy, but acknowledge that the uncertainty surrounding the Scottish Independence debate could also be a contributing factor.

‘Comparing prices from year to year is complex, as each property is entirely unique. However an analysis of the component parts, for example houses, land, woodland, and sport, reveals little has changed since the 2007 peak, suggesting sellers’ fears about prices in an uncertain climate may be unfounded,’ explained Henderson.

‘We anticipate a similar market in 2013. The best quality estates are likely to generate strong demand, irrespective of economic conditions, as owning a fine Scottish sporting estate is often a lifetime aspiration rather than a business decision,’ she said.

‘Average values might be affected if the number of estates on the open market increase significantly, but it must be stressed that there is no sign that 2013 is likely to bring forward a flood of new properties,’ she added.