It is the first time the city has been ranked above cities like Edinburgh and London in the Top UK Residential Investment Cities Report by Colliers.
The residential and commercial property firm said Glasgow’s rise “reflects strong performance” across several aspects, including economics, research & development and property.
UK Treasury rejects Glasgow call for funding ‘parity’ with English regions
Here’s how much the World Cup holiday will cost Glasgow City Council
Homeless budget borrowing deal for Glasgow branded ‘sticking plaster’
It stated broadband connectivity, house price growth and rental yields also had an impact.
Glasgow’s 9.3% rental yield, joint highest with Belfast, significantly exceeds the 20-city average of 7.6%.
Last year reports showed the average monthly rent for a property in the city reached £1,150, reflecting a modest year-on-year increase of 0.5%.
Projections showing Glasgow’s population predicted to grow, while retaining relative affordability, add to the attractiveness.
The city has an affordability ratio of 5, which the study says compares favourably with Edinburgh (6.4) and London (10.8).
Edinburgh secures second place, and London, Cambridge and Manchester complete the top five.
London slips from first to third due to slightly softer GDP projections, though it remains the UK’s R&D powerhouse with around 440,000 students and world leading universities including LSE, Imperial and UCL.
Andrew White, head of residential at Colliers said: “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.”
Oliver Kolodsieke, 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.”