Aberdeen is presenting a growing opportunity for landlords and property investors thanks to lower house prices, rising rents and strong rental yields, according to DJ Alexander.
The lettings and estate agency firm says the city combines some of the most affordable property prices in Scotland with relatively high wages and a strong private rented sector market.
Latest figures show average property prices in Aberdeen fell by £7,517 over the last year to £128,485 – the largest annual decline of any region in Scotland – making the city one of the cheapest places to buy property despite having the country’s second highest average salary at £39,822.
DJ Alexander says Aberdeen’s large oil and gas workforce continues to underpin rental demand, with political support for increased North Sea drilling activity potentially creating further demand for rented accommodation in the years ahead.
SOLID FUNDAMENTALS
The latest Citylets Q1 2026 report found average rents in Aberdeen increased by 1.7% year-on-year to £878 per month. Two-bedroom rents rose 1.8% to £812 per month, while four-bedroom properties increased by 5.3% to £1,661 per month. Around 42% of properties were let within a month, with the average time to let standing at 45 days.
Adrian Sangster (main picture), Head of Property Management & Letting at DJ Alexander in Aberdeen, says the city offered “solid fundamentals” for landlords, with rising rents, reasonable purchase prices and the prospect of stronger demand if energy sector activity increases.
He also highlights Scotland’s tax relief incentives for portfolio landlords, including Multiple Dwellings Relief (MDR) and Additional Dwelling Supplement (ADS) exemptions on larger purchases.
STRONG YIELDS
DJ Alexander says Aberdeen continues to offer some of the strongest rental yields in Scotland, with Citylets data showing flat yields of 9.8% in AB24, 8.6% in AB11, 8.4% in AB25 and 7.8% in AB10.
Sangster adds that demand remained strongest for well-presented one and two-bedroom flats and family homes close to employment hubs, transport links and amenities.
He says: “For investors, Aberdeen is a long-term income market with lower entry costs and strong yield potential. For many landlords, that balance between affordability and rental return is exactly what makes the city attractive.”
