Robb Report Vacation Homes



	Gaelic Getaway Abby Aron 02/01/2008
	Mention Scotland to most North Americans and they will tell you everything there is to know about the country, perhaps even sharing with you their Gaelic heritage. Mention Wales, on the other hand, and the conversation rapidly dissolves. The story is similar for the property markets in both regions. While the market in Scotland is in the midst of unprecedented growth—property prices have more than doubled in the last decade—Wales is reluctant to open its doors to a wider audience despite a steady demand. Scotland Two-thirds of all buyers in Scotland are either from England or overseas. Buyers from England are attracted to the high market value; a six-bedroom detached villa in Aberdeen, for instance, goes for the same price as a four-bedroom terraced townhouse in London’s suburbs. And overseas buyers are drawn to Scotland for its fairy-tale cottages, crofts and country estates. Though the golfing mecca of St Andrews is highly desirable, the demand is greatest around the capital of Edinburgh, where, since being declared a World Heritage site, the city has experienced a shortage of estate homes and land for developing. Buyers can, however, select from an array of Georgian and Victorian single-family homes. Scotland’s thriving real estate market consists mostly of private urban homes and country estates, but a few proposed resort communities promise additional opportunities for buyers. The Highland Club, set off the southern shore of Loch Ness, is a 24-acre property that will include 97 apartments and 12 cottages in a communal environment. Photograph by Tom Baker. (Click image to enlarge) Edinburgh’s real estate market has grown by 146 percent in the last 10 years, with an average house priced around $2.1 million. A notable newcomer is Quartermile, a $1.7 billion project set within the 19-acre Royal Infirmary, which was originally built in 1740. When renovations are completed in 2012, it will include a 65-room boutique hotel and a mixture of 900 contemporary and period residences. In nearby East Lothian, the 550-acre Archerfield Estate is another project rooted in history. With 100 homesites for sale, the property’s selling points are its two links golf courses and a newly refurbished 16th-century mansion, which houses a 15-suite hotel and restaurant. Country estates that offer access to fishing, grousing and stalking are the highest in demand in Scotland, fuelled by London’s high-flown business executives who have experienced better rates of return from Scottish property than they have from the British stock market. Also investing heavily are Russian oligarchs, who are attracted to the traditional Scottish lifestyle. Most estates are situated in the woodland and moorland regions of Perthshire and Invernesshire, where the rivers are rife with trout and salmon. Prices for country estates typically range from $10 million up to $40 million, not including hidden expenses such as annual upkeep fees, which can be around $200,000. A country home 55 miles from Edinburgh is listed through Strutt & Parker for $885,000. (Click image to enlarge) But such properties are rare. Strutt & Parker, a UK property consultant firm that sells about a dozen estates annually, reports that most are sold privately. When country estates do come on the market, buyers usually outnumber sellers by a ratio of eight to one, creating a market where buyers are happy paying as much as 30 percent more than the property’s appraised value. Newly built resort communities that offer golf, dining and coastal views without the upkeep of a rural estate may be Scotland’s next big real estate trend. If government land authorities approve plans, the largest of several proposed projects will be Donald Trump’s $2 billion Aberdeen resort set beside three miles of coastline on the North Sea. The anticipated 1,400-acre complex—known as Trump International Golf Links, Scotland, and located on the land of a 14th-century sporting estate—would include two championship golf courses, a golf academy, tennis courts, a 450-room luxury hotel and nearly 1,500 private residences. Local officials voted against the project last December, but the Scottish government called in the resort’s building application for further review; a new decision is expected sometime this spring. Trump is not the only North American trying to develop some of Scotland’s prime real estate. Although details have not been announced, American developer Tim Blixseth has invested in a 265-acre site that overlooks St Andrews Bay for a Yellowstone Club World resort. And until recently, Wasserman Real Estate Capital in Providence, Rhode Island, had been in the throes of converting the landmark St Andrews Grand—a former Victorian hotel set along the 18th green of the legendary Old Course—into a membership residence club that would have granted owners limited access to a specific unit. The company is currently restructuring its business plan so that buyers can purchase units outright. Already approved and under renovation is the Highland Club, located to the north in the remote Highlands. Set back on 24 acres on the southern shore of Loch Ness with 97 luxury apartments and 12 cottages, the project is slated for completion in summer 2009. The development will also include the cloisters and towers of a 130-year-old former monastery. In addition to mooring rights, tennis courts, cricket fields and fishing, owners have access to the stained-glass, oak-paneled Club Lounge and game room that once served as the monks’ refectory.Wales Despite a climate similar to San Francisco’s, 750 miles of coastline, 200 golf courses and more castles per square mile than anywhere else in the world, Wales is best known for its sheep. It is heavily industrial in parts, but most of the country is rural, with a scant population of three million. In the south exists the gently undulating Brecon Beacons mountain range, and to the north are the craggy mountains of Snowdonia. Most popular for vacation villas are the cities of Newport (future site of the 2010 Ryder Cup) and the capital of Cardiff, with its namesake bay. Under construction is the one-acre Watermark residential development, which will feature 51 contemporary one- and two-bedroom apartments, eight two-bedroom skyline apartments and one penthouse overlooking Cardiff Bay. The St Andrews Grand, which operated as a hotel in the late-19th century, sits across from the 18th-hole of the Old Course. Since 2006, the redstone building has been under extensive restoration. If current plans prevail, the property will open in 2009 with 23 private residences. (Click image to enlarge) But in this country no bigger than the state of Massachusetts, large-scale development is unpopular. "Wales is not set up for the same degree of building as Scotland," says real estate agent Anthony Clay of UK-based Knight Frank. "The Welsh are hesitant to sell to out-of-towners; they tend to hang onto their homes and keep them in their families. It’s very tricky to buy land to develop here and most attempts to do so normally come up against heavy opposition." Some developers, however, have been successful getting around planning laws by converting old industrial buildings such as mills, barns and churches into modern homes. Occasionally castles come up for sale, but typically with a "Grade I" or "Grade II" listing, which places stringent restrictions on any sort of change. Also protected from development is the Gower Peninsula, located on Wales’ picturesque south coast. Mumbles is the most popular of several small villages that make up the area, but limited real estate has caused prices to run about 20 percent higher than in the rest of the country—putting it on a par with southern England. Even modest accommodations, such as fishermen’s huts that sold for $62,000 three years ago, are now being snapped up for more than $400,000. Currently, $3.2 million will buy a five-bedroom Edwardian home on a half acre near the famous Langland Bay Golf Club. Set within the Royal Infirmary in Edinburgh, the Quartermile development will include 900 residential units. (Click image to enlarge) One of the few resort communities in Wales is the Machynys Peninsula Golf & Country Club, which includes 158 New England–style homes. The development is located in Carmarthenshire, overlooking the Gower Peninsula, and is on phase four of a six-phase plan. Situated next to a Jack Nicklaus–designed golf course, the project offers access to a country club, health club and spa. But for most buyers, the attraction is not the resort as much as Wales itself. It is unlikely that the country will ever attract the kind of investments seen in Scotland. Chances are it will keep its appeal as one of the few places left in the United Kingdom where fields and countryside take precedence over bricks and mortar.Developments/Real Estate SCOTLAND •1 Archerfield Estate Size: The 550-acre estate includes 100 homesites, developed by owners or by developers who sell the properties as resales. Amenities: Access to two links courses, a 15-suite hotel and restaurant Broke ground: March 2007 Pricing: Homesites from $1 million; developer homes from $3 million +44.16.2.085.0373 www.archerfieldgolfclub.com •2 Highland Club Size: The 24-acre site includes 97 apartments ranging from one to three bedrooms and 12 two-bedroom cottages. Amenities: Tennis courts, cricket field, a club lounge, mooring rights and access to golf and fishing Broke ground: 2005 Pricing: From $413,000 to $661,000 +44.145.648.6631 www.highlandclub.co.uk •3 Quartermile Size: Set within Edinburgh’s 19-acre Royal Infirmary, the project will include 900 contemporary and period residences. Amenities: Concierge services, access to a boutique hotel and proximity to a wide variety of shopping and dining Broke ground: Renovations began in 2004 Pricing: From $485,000 to more than $4 million Rettie & Co., +44.13.1.220.4160 www.qmile.com •4 St Andrews Grand Size: The plan currently consists of 23 units. Amenities: A gym, formal dining area, concierge services and access to several local golf clubs Broke ground: Restoration began in 2006 Pricing: Not yet determined www.standrewsgrand.com •5 Trump International Golf Links, Scotland Size: If approved, the 1,400-acre project will contain 36 four- to eight-bedroom golf lodges, 500 freestanding homes and 950 condos. Amenities: Two championship golf courses, a golf academy and clubhouse, tennis courts and a 450-room luxury hotel Broke ground: Scheduled for 2008 for the first course and several years out for residential properties Pricing: Not yet determined +44.13.5874.3300 www.trumpgolfscotland.com WALES •6 Machynys Peninsula Golf & Country Club Size: 158 New England–style homes Amenities: Jack Nicklaus–designed golf course, country club, health club and spa Broke ground: 2004 Pricing: Homes from $495,000 +44.15.5474.6736, www.machynyshomes.com •7 Watermark Apartment Size: 51 one- and two-bedroom apartments, eight two-bedroom skyline apartments and one penthouse that overlooks Cardiff Bay Amenities: Not yet determined Broke ground: 2006 Pricing: Not yet determined +44.11.7927.3510 www.watermarkapartments.co.uk Realtors Strutt & Parker +44.20.7629.7282 www.struttandparker.co.uk Knight Frank +44.20.7629.8171 www.knightfrank.co.uk