Aberdeen’s private rental sector is attracting property investors and landlords due to lower house prices and rising rents, according to DJ Alexander.
The lettings and estate agency in Scotland said Aberdeen offers a sustainable investment with prices falling by £7,517 over the past year to £128,485, the biggest drop in any Scottish region.
Citylets Q1 2026 report found average monthly rent in Aberdeen increased by 1.7% to £878.
Two-bedroom properties rose by 1.8% to £812, and four-bedroom properties rose by 5.3% to £1,661.
The report also showed 42% of properties let within a month, with average time to let at 45 days.
Adrian Sangster, head of property management and letting at DJ Alexander in Aberdeen, said: “There is a very positive message about the sector in Aberdeen which is potentially on the cusp of an increase in property prices coupled with greater demand in the PRS.
“In response to recent events the political consensus is shifting toward a recognition that oil and gas will be required by the UK for decades to come, and it makes more sense to drill in the North Sea than import from across the world.
“For existing and prospective landlords this is a market with solid fundamentals with rents rising, demand remaining good, and reasonable purchase prices.”
Sangster added: “For investors an added incentive is that Scotland is the only part of the UK offering attractive tax relief on the purchase of properties for the PRS.
“The two main methods of tax relief are multiple dwellings relief (MDR) which is available for purchases of two properties or more in a single or linked transaction and the Additional Dwelling Supplement (ADS) which is usually charged at 8% but, combined with MDR, does not apply to purchases of six properties or more.
“Utilising these reliefs with appropriate advice can produces cost reductions of tens of thousands of pounds on the purchase price.”
He said: “While landlords have faced significant regulatory, tax and cost pressures in recent years, there remains a strong investment case, particularly for those with good quality properties, realistic pricing and professional management.
“The strongest demand continues to be for well-presented homes in good locations, particularly one and two-bedroom flats and family homes in areas with strong access to employment, transport and amenities.
“Citylets data shows flat yields of 9.8% in AB24, 8.6% in AB11, 8.4% in AB25 and 7.8% in AB10, which are compelling figures for investors looking for income rather than short-term capital speculation.”
He added: “Tenants are more value conscious than they were during the peak of the market, but they are still prepared to move quickly for the right property.
“The key is not simply whether to stay in the market, but how to stay in the market successfully.
“Presentation, pricing, compliance and proactive management are all essential. A property that is well maintained, marketed correctly and priced in line with current demand can still perform very well.”
He said: “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.
“For landlords and property investors at all levels Aberdeen offers good potential returns for years to come.”