Glasgow has been ranked first in Colliers’ latest assessment of UK residential investment cities, which evaluates locations based on yield performance, economic indicators and ESG measures.
The city recorded average rental yields of 9.3%, the joint highest in the survey alongside Belfast, compared with a 20-city average of 7.6%. Glasgow’s house price-to-earnings ratio stands at 5, compared with 6.4 in Edinburgh and 10.8 in London.
The report noted the city’s performance across economics, research and development, property and ESG categories, supported by business formation growth, digital infrastructure improvements, and rising house prices.
Top five rankings
Edinburgh placed second and remains the only city to feature in the top five of every edition of the report since 2021. London fell from first to third, driven by softer GDP growth expectations, though it continues to lead in research and development activity.
Cambridge moved into the top tier with the joint-highest GDP growth forecast in the UK at 2.5%, while Manchester completed the top five with consistent performance across all measured categories.
Belfast recorded the strongest Property Pillar score, driven by the lowest price-to-earnings ratio in the survey at 3.9 and rental yields matching Glasgow at 9.3%.
Market constraints
Andrew White, head of residential at Colliers, said: “Glasgow’s rise to the top spot reflects a shift we’ve been tracking for some time. Strong yields, economic resilience and improving fundamentals are making the city increasingly attractive to investors.”
He added that new development across leading locations is being constrained by economic and planning factors, limiting supply and maintaining pressure on pricing and rents.
Oliver Kolodseike, head of economic research at Colliers, commented: “This year’s rankings show clear diversification in the UK residential landscape. While some cities are seeing softer economic projections, others, like Glasgow and Cambridge, are strengthening their position through strong GDP forecasts, population growth and improved connectivity.”
The report suggests affordability constraints continue to influence investor appetite, particularly in higher-priced markets such as London.
