Property markets in Edinburgh and Dundee remain strong – our teams report average house prices rising amid persistent demand and a shortage of new homes.
Chris Todd, Partner and Head of Residential Property and Maurice Allan, Managing Director of Residential Property, offer their insights and expectations for the year ahead.
Edinburgh’s average house price has climbed to nearly £355,000, with new figures from our residential property team showing continued demand and limited supply driving steady growth in the city’s property market.
The average sale price in the capital during 2025 was £354,522 - up 2.6% on our transactions during the previous 12 months (£345,310). We expect 2026 to be another year of similar price increases, with demand from homebuyers continuing to outstrip supply across the city and properties generally selling at about their home report valuation level.
Maurice Allan, Residential Property Managing Director said: “There’s a good balance to the market right now. There’s no reason to suspect that’s going to change.
“The big issue that we always have in Edinburgh is lack of supply. There are always people moving here - it’s a place people want to be - but there are very few places to build new homes within the city itself. That creates a very particular dynamic to the local market.
“We expect 2026 to be much in line with the past 12 months. There are certainly no signs of a downturn.
“A market without extremes is always the healthiest. We want to see fluidity in the market, where it’s relatively easy to buy and relatively easy to sell. That’s what we have right now.”
In Dundee, average house prices have risen to almost £218,000, where the average sale price recorded by our team in the city during 2025 was £217,751 - up 3% on the previous 12 months (£211,381).
Our property team expects 2026 to be another year of modest price increases, creating attractive trading conditions for sellers and buyers.
Chris Todd, a Partner with Lindsays in Dundee and the firm’s Head of Residential Property, said: “Demand in Dundee - and across Tayside - is steady. It’s a good market to work in.
“It is busy and tradable, which is good news for everyone. The market locally continues to prove itself to be resilient. Our strong public sector presence tends to make it less susceptible to the ups and downs that we see in other regional markets.
“The market has been steady throughout 2025 and we expect to see more of the same during 2026, with similar increases in average prices.”
Commenting on what to expect across both markets in 2026, Chris added: “One of the most significant factors that we’re going to see during 2026 will be around the cost of borrowing.
“We can expect a degree of certainty around interest rates. We do not expect any significant change in those and that provides a level of certainty, with mortgage lending fairly readily available. That all points towards a balanced, steady market for the next 12 months.”
According to the latest statistics from the UK House Price Index, the average price of a property in Scotland is £194,000, up 5.3% on the year.
Published 5 January 2026
