‘Hidden’ luxury property market thriving in Scotland

The number of properties being publicly marketed has declined, with the latest Registers of Scotland figures showing a 6.5 per cent year-on-year fall.

A rising number of properties, however, are being sold off-market, with buyers willing to pay more to avoid a bidding war.

Edinburgh property firm Garrington said that the “hidden market” was thriving.

“Looking at the property portals, buyers could be forgiven for believing that there are not many new properties being offered for sale,” a spokesman said. “But this is increasingly not an accurate reflection of the Scottish property market.

“A ‘hidden’ market is bubbling along away from the public eye and is often where some of the finest properties are offered only to a select few attractive buyers, meaning those with no linked property transactions and their finances fully arranged.”

Simon Rettie, managing director of Rettie & Co, said: “We have seen a surge in off-market sales due to a lack of stock and an increase in demands.”

He said there were various reasons for avoiding the open market.

“Off-market deals are generally less stressful,” he said. “We have found that non-active home sellers like to be approached if a potential buyer is open to making a highly compelling offer for their property.

“In addition, we are seeing more and more clients asking for complete confidentiality regarding a sale. This is particularly relevant for homes over £2,500,000.”

He added: “Another factor in the decision to keep the property sale off-market is that often home sellers target very full prices. This can be as much as 20 per cent over the home report value.

“Buyers who can secure their next home off-market feel good about not having to compete against others and will pay a premium price for the pleasure.”

Mr Rettie said one in four sales in Edinburgh involving properties that exceeded £1.5 million had been made privately.