Glasgow has ranked first in Colliers’ latest assessment of UK residential investment cities, which evaluates locations across yield performance, economic indicators and ESG measures.
The city recorded strong results across the Economics, R&D, Property and ESG categories, supported by growth in business formation, improvements in digital infrastructure, rising house prices and higher rental returns. Average rental yields in Glasgow stand at 9.3%, the joint highest in the survey alongside Belfast, compared with a 20-city average of 7.6%.
The report also points to positive population growth forecasts and above-average economic momentum, while maintaining lower entry costs than several competing markets. Glasgow’s house price-to-earnings ratio is 5, compared with 6.4 in Edinburgh and 10.8 in London.
Edinburgh, London, Cambridge and Manchester make up the remainder of the top five investment locations.
Edinburgh placed second and remains the only city to feature in the top five of every edition of the report since 2021. Its position reflects strong employment and population growth projections, alongside consistent performance across research activity, liveability and ESG metrics.
London fell from first to third, driven by softer GDP growth expectations, although it continues to lead in research and development activity, supported by a large student population and major academic institutions. Cambridge moved back into the top tier on the back of the joint-highest GDP growth forecast in the UK at 2.5%, while Manchester continued its long-term trend of top-ten performance across all measured categories.
Outside the top five, Belfast recorded the strongest Property Pillar score, driven by the lowest price-to-earnings ratio in the survey at 3.9 and rental yields of 9.3%.
Andrew White, head of residential at Colliers, commented: “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. However, across these leading locations new development is being constrained by economic and planning factors, which is limiting supply and keeping pressure on pricing and rents.
At the same time, consistent performers such as Edinburgh, Cambridge and Manchester continue to demonstrate the long‑term depth and stability of the UK’s regional markets.”
Oliver Kolodseike, head of economic research at Colliers, added: “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. London remains unmatched in R&D strength, but affordability constraints continue to shape investor appetite.”