Our new residential magazine looks at what's happening in your area: ‘Mid-range period flats and houses are sought after.'

The property market in Edinburgh has been adversely affected by the global economic situation, and it is possible to see a direct correlation between concerns over sovereign debt in Europe and property enquiries in the UK. Additionally, a large number of affluent buyers previously employed by banks in the Scottish capital have been relocated, reducing the amount of purchasing capital in the market.

The traditional autumn selling period was unusually quiet last year, but the market picked up in October and November. The top end of the market, including mansions in excess of £2 million, proved particularly challenging, whereas family homes in the £400,000 to £1 million bracket in sought-after areas such as Stockbridge, the Grange and Morningside were relatively unaffected by market conditions, owing to their proximity to excellent schools. The lower end of the market, particularly two-bedroom flats, proved difficult, with increasing numbers of such properties becoming available. Our sale highlights of the year include 7 Kinellan Road and 9 Greenhill Gardens, which both sold for their valuation price within 10 days of marketing. More recently, we have achieved phenomenal sales in the Inverleith area, with three properties sold in excess of £1 million.

This year, we expect properties over £2 million to pose a challenge, owing to the lack of active buyers in this sector, although a number of houses in this price range did sell towards the end of 2011 to overseas buyers and those returning to the city. Period flats and houses in the mid-range £500,000 to £1 million bracket in the traditional hotspots will continue to be sought after, especially if they have outside space. The key to selling in 2012 will be realistic pricing and continuing awareness of current market conditions.

Read the full magazine: &homes - Edinburgh City