Dundee Buy-to-Let Guide

According to Rightmove, properties in Dundee had an average price of £167,661 in 2023. This is much cheaper than the overall UK average house price, which was £287,782 in October 2023, per the HM Land Registry.

But this figure is 2% down compared to 2022. This is characteristic of the UK property market, which is currently experiencing sluggish growth, with subdued growth and small amounts of negative growth observed in different areas.

But are house prices in Dundee set to continue falling? Property experts Savills forecast an optimistic outlook for Scotland over the next 5 years, predicting growth of 25.8% leading up to 2029. This is higher than the projected growth for the UK as a whole, which is 23.4% and good news for Dundee’s property market.  Why not learn more about the Edinburgh property investment market with our dedicated property guide.

Learn More: Whether you want to know how long a short-term let is or the latest buy-to-let stamp duty tax, our expansive investment guides cover a wide range of topics!

Dundee can offer various types of property investment opportunities depending on the area.

The City Centre and West End are popular with students and those who wish to be close to amenities and employment opportunities in central Dundee.

To the east, there are more upmarket suburbs like Broughty Ferry, while more affordable property can be found in western suburbs like Lochee.

Average Property Prices in Dundee City Centre

The average property price in this area is £123,618.

Average Rental Yield in Dundee City Centre

The average rental yield in this area is 7.14%.

Average Property Prices in Lochee

The average property price in this area is £91,041.

Average Rental Yield in Lochee

The average rental yield in this area is 9.98%.

(Average property prices were taken from Rightmove in late 2023, and rental yield estimates were calculated with figures from housesforsaletorent.co.uk in late 2023)

What is the Best Area of Dundee to Invest in?

Property in Dundee’s nearby towns can be pricier than in more central areas, so if you’re targeting commuter renters, it could be advisable to look towards cheaper towns like Tayport in Fife.

Eastern suburbs like Broughty Ferry can offer a decent rental yield, but more affordable areas like Lochee can offer very high yields thanks to the cheap property on offer.

Another hotspot for high rental yields is the City Centre. This could be due to the number of student rental properties there, which often have a higher rental yield than standard residential rentals

Growing Tech Industry Hub

Dundee is famous for its video game industry and is the birthplace of the internationally popular game Grand Theft Auto. This global reputation has helped facilitate massive growth in Dundee’s technology sector. This includes software, business solutions, ICT, robotics, games, media, screen production, analytics, AI, and cybersecurity.

Dundee’s connection to video games has even led to the development of an esports arena set to open in 2025 as part of the city’s £1 billion waterfront regeneration. Abertay University is also recognised as Europe’s leading games school.

Dundee plans to become a ‘smart city’ through substantial investment in the digital sector.

Student Population

Dundee’s student population ratio is 1:5, the highest in Scotland and one of the highest in the UK overall. There are two universities in the city, the University of Dundee and Abertay University. The University of St Andrews is also just 14 miles away.

In 2021, it was named one of the most fun cities to be a student in, and it was voted one of the best student cities in the UK in 2022. It’s no wonder, then, that this small city keeps attracting students to live and study there.

There are some downsides to investing in student accommodation, such as frequently changing tenants, but it can often command higher rental yields than standard residential properties as several students usually wish to live together, and landlords charge per person.

Looking at student property investments for sale in prominent areas is a good way to ensure consistent rental demand for a property, as there is a guaranteed influx every year.

Investing in Dundee property ‘off-plan’ also makes it possible to get a good deal on a newly built property, essentially investing while the development is still in the planning or construction phases.

New-builds are usually more expensive than older properties, but off-plan investing has emerged as a way to acquire a new property at a lower price point.

However, most opportunities for this kind of investment are still to be found in larger cities.

Examples include Liverpool and Manchester, where investing off-plan in purpose-built student accommodation is also possible.