The prime residential market across Scotland has outperformed the overall Scottish market, with the highest level of activity since 2007, according to a new analysis.

Prime transactions, that is for properties sold for £400,000 and above, across Scotland increased annually by 32% during the year ending March 2014 compared to 20% for the overall market.

The analysis from real estate company Savills says that such strong sales are being driven by the hubs of Edinburgh, the Aberdeen area and Greater Glasgow.

The Tayside region, which includes the counties of Angus, Perthshire and Kinross, has benefited from the strength of the Aberdeen market, with a 36% annual increase in sales as well as a return to closing dates.

Around 20% of Savills buyers across Tayside in the last 18 months came from the Aberdeen area, with a further 45% coming from other parts of Scotland and the rest of the UK, thus highlighting the popularity of the Tayside region as an attractive area for relocation.

There was also a jump in transactions at the top end of the market above £1 million in Scotland, with 144 sales recorded in the year ending March 2014, including nine in Tayside with buyers coming from as far afield as South Africa.

Prime values across Scotland are rising, especially in the hotspots of Edinburgh and Glasgow due to the reduction in stock following the rise in prime sales. The rebalancing of supply and demand has begun in the country locations including Tayside where values have stabilised. The prime Tayside market is being led by the lower end of the market up to £500,000 where values have increased. The upper end of the regional country house market remains challenging as there is currently a high supply of stock at this level.

The number of mainstream sales across Scotland increased annually by 20% during the year ending March 2014, mainly driven by an increase in mortgage lending. Mainstream values across Scotland as a whole increased annually by 8% during the first three months of this year, which reflects the confidence returning to the market.

Within Tayside, the market in Angus has had a strong year with a 33% annual increase in transactions. The market in Perth and Kinross is consistent with the rest of Scotland in terms of activity. Residential activity in the cities of Dundee and Perth also increased, however the markets in these areas are still lagging the rest of Tayside and Scotland as whole.

Meanwhile, the Scottish Government has published new figures showing significant growth in the Scottish property sector over the last year. The figures show that the cash value of residential sales has risen from 22.2% between 2012/2013 and 2013/2014 and that sales volumes in 2013/2014 are the highest since 2007/2008.

‘These figures are extremely encouraging, especially when viewed alongside the wider indicators of strength in the Scottish economy, where Scotland is outperforming the UK on employment, unemployment and economic activity,’ said Enterprise Minister Fergus Ewing.

‘Inward investment in Scotland as a whole…