Prime Edinburgh house prices fell in 2010, but the property market is set for a positive start to the new year, says Knight Frank

House prices in Edinburgh have fallen this year, but the Scottish capital’s property market is set for a positive start to 2023, Knight Frank has said.

According to the firm’s latest Edinburgh Townhouse Index, property in prime locations across the city is worth an average of 4.2 per cent less than it was at the start of the year.

However, overall house prices in Edinburgh have fallen by just 0.3 per cent in the final three months of 2023.

With typical reductions of 12 per cent, it is the most expensive homes in Scotland’s capital that have seen their values slide furthest, while properties in New Town and the West End have shown the strongest performance.

Matthew Munro, head of Edinburgh city sales at Knight Frank, said that it had “without doubt” been a very difficult year for Scottish property markets.

“The majority of houses have fallen in value. There have, however, been some active signals emerging and I am looking forward to a positive start to 2023,” he added.

Munro said that he not expect prices to increase significantly next year, though he does believe that markets will become “much more active”.

The findings come after property advisor Savills noted just a fractional price decline of 0.2 per cent for prime London real estate in the final quarter of 2023.