Hot Spot: Edinburgh

Devolution and the ever-popular Festival have sent prices soaring in the historic Scottish capital, says Robert Liebman

Renowned for its architecture and its festival, Edinburgh garnered a Unesco World Heritage Site designation in 1995 and self-government five years later. Property prices predictably soared in the run-up to devolution, and a sellers' market has persisted. Elizabeth Bruce, an Edinburgh native and spokeswoman for the Royal Institution of Chartered Surveyors in Scotland, explains: "With the Scottish Parliament, Edinburgh is a real legislative centre, and we also have many financial services and corporate headquarters. It is a good place to live, much less stuffy than it used to be. Shops and night life have improved and we have more restaurants per head of population than London."

Commerce has also shifted. "When I started working here 20 years ago, offices were mostly in townhouses around Charlotte Square. Now, custom-built prestigious high-tech offices are all over the city. Houses and flats for sale are still relatively lacking, so competition is fierce for anything that comes onto the market. In Scotland the vendor sets an 'offers over' price, which is the lowest they are prepared to accept. Once accepted, the offer is binding, although the seller is not obliged to accept any offer, even the highest."

Edinburgh has been the Scottish capital since the 15th century, and the Unesco World Heritage citation highlights its two distinct areas: the Old Town, dominated by a medieval fortress, and the neoclassical New Town, whose development from the 18th century onwards had a far-reaching influence on European urban planning. According to Bruce, the juxtaposition of these two contrasting historic areas is what gives the city its unique character.

The medieval fortress is, of course, Edinburgh Castle. The Palace of Holyroodhouse, at the other end of the Royal Mile, is also in the Old Town. The city's history echoes with such names as Sir Walter Scott, Robert Louis Stevenson, Adam Smith and John Knox. Today, Edinburgh boasts writers such as JK Rowling, Ian Rankin and Irvine Welsh.

Some important buildings were lost in December's fire in the Cowgate, which is a maze of buildings, closes and alleyways that posed major problems for the firefighters, says Bruce. "The site has attracted a few architects' proposals, but many people want its character to be preserved and are watching carefully. Although some clubs and festival fringe areas were destroyed, the affected area is actually quite small."

The Low-Down

Getting there

Train journey times are 45 minutes to Glasgow, an hour and a half to Newcastle and four and a half hours to London. The international airport, 30 minutes west of the city, has scheduled flights to many destinations in the UK, Europe, North America, the Middle East and Hong Kong.

Shop till you drop

Harvey Nichols opened last summer and thanks to retailers such as Jo Malone and Whistles, George Street is now competing with Princes Street as the premier shopping venue. Speciality shops can be found on the Royal Mile and Victoria Street, and Fenton Barns and Freeport shopping villages provide further opportunities.

Festival city

The International Festival and the Fringe top the bill, but major events start with Hogmanay and include a Science Festival, an International Festival of the Sea, the Royal Highland Show, a film festival, craft and design fair, and many other events.

A sense of history

Major museums, some with world-beating collections, include the Royal Museum (for sculpture, technology and antiquities), the National Gallery of Scotland, and the Scottish National Gallery of Modern Art and Portrait Gallery.

Time out

A multiplex cinema complex opened less than a year ago, joining several other modern movie houses (and forcing older, smaller cinemas to close, according to Elizabeth Bruce). The city's many theatre and concert venues include the Royal Lyceum Theatre, the King's Theatre, the Festival Theatre, the Traverse Theatre and the Usher Halll.

Get active

Edinburgh has more than a dozen council-run leisure centres and swimming pools. The city also has Europe's largest dry ski slope.

What you'll pay

A city-centre studio in a traditional red sandstone tenement is seeking offers over £67,000 at Anderson Strathern. A two-bed basement flat with walled garden is seeking £260,000, and a third-floor three-bed flat, £285,000 at Rettie.

Heritage homes

A Victorian sandstone terraced villa in Murrayfield near Haymarket station, good schools, riverside walks, a tennis club and golf courses; offers over £535,000 at FPDSavills. Knight Frank has period flats from about £200,000 up to townhouses for £1m.

Crusading spirit

A three-bed Edinburgh flat dating from 1605, once owned by the Knights Templar, is believed to be Edinburgh's oldest apartment; offers over £325,000, at Rettie.

New

Printworks has 59 flats in the former Waddies the Printers building in Slateford Road; from £221,000, at Knight Frank. The local developer Betts has built 49 two-bedroom flats in Duddingston, four miles from the city centre, from £118,000 (0131 7184960). Bellway is constructing 75 flats and penthouses in the Haymarket area, from £150,000 (0131 3467965), and Bryant has developments in Fairmilehead, Leith, Hopetoun Village and Broughton (0131 445 4302).

Estate agents

Anderson Strathern, 0131 220 4848; FPDSavills 0131 247 3710; Knight Frank, 0131 225 8171; Rettie, 0131 220 4160.