Edinburgh generates tourism revenue exceeding Dh7 billion and supports approximately 30,000 jobs.
With a Unesco World Heritage Site at its heart and a burgeoning economy, is it any wonder that Edinburgh was recently voted the Best Place to live in the UK in a poll conducted by the UK-based television station, Channel 4?
Located in the south-east of Scotland, Edinburgh lies on the east coast of its Central Belt. With a skyline dominated by an iconic castle situated precariously on an extinct volcanic crag, the city is considered one of the most picturesque in Europe.
As one of the major centres of the Enlightenment, led by the University of Edinburgh, it earned the nickname Athens of the North. Although capital of Scotland since 1437, Edinburgh is now considered a European capital since 2004 when it was chosen as the seat of a devolved parliament from the UK.
In addition, the city is considered the pride of Scottish tourism, generating revenue exceeding Dh7 billion and supporting 30,000 jobs. Indeed, Edinburgh is one of Europe's major tourist destinations, attracting around 13 million visitors a year, and it is second only to London as the most visited tourist destination in the UK.
Edinburgh's uniqueness comes from its exceptional quality to blend its medieval past with the present. This is reflected in the city's architecture where the winding streets of the Old Town – dating from the 11th century – exist in harmony with the Georgian architecture and cobbled streets of the New Town.
But this diverse yet stunning architecture serve only as a backdrop to Edinburgh's prime selling point: a thriving cultural scene.
The city's cultural identity is defined by the world-renowned Edinburgh Festivals including the Edinburgh International Festival and its more hip sibling, the Fringe Festival which take place every year in August.
The Edinburgh International Festival was set up in 1947 to heal the wounds that remained from the Second World War and to celebrate the human spirit. According to George Anderson, spokesperson for the festival committee, the festival's principle objectives today are "to remain a festival which offers a chance to reflect on life through the prism of art."
The festival has the kudos of being international in more than just its name. Each year, according to Anderson "half of all attendances are made by visitors to Scotland."
With respect to performers, this year will feature the Palestine National Theatre and the Bazi Theatre Company from Iran. Although performing at the International Festival is by invitation only, issued by the Festival Director, the Fringe – established in the same year – is an open access arts festival.
Anne McMeekin, Press and Marketing Officer explains: "This festival provides a platform for new and experimental performers to showcase their act without being subject to artistic vetting or selection".
The Fringe is by far the largest component of the Edinburgh Festivals, with 31,000 performances of 2,050 shows in almost 250 venues and contributing over Dh500 million to the Scottish economy. McMeekin continues: "The Fringe has a 75 per cent market share of all attendances [at the festivals]. Last year we sold just under 1.7 million tickets."
Each year many famous names appear at the Fringe such as Billy Connolly, Ricky Gervais and Joan Rivers. Of course, there are also performers who use it to kickstart their careers, most notably Academy Award winner Rachel Weisz. Apart from an extensive and flamboyant cultural persona, there are other facets to the city. Edinburgh boasts the strongest economy of any city in the UK after London.
The city is the second largest financial centre after London with world headquarters for companies such as Royal Bank of Scotland, the fifth largest bank in the world. Furthermore, the city and its hinterland are deemed one of the fastest growing regions in Europe and Edinburgh has emerged as Europe's sixth largest financial centre.
Though initially welcomed by its residents, this vibrant growth that the city has experienced in recent years has now divided social opinion as one negative side effect continues – the lack of affordable housing.
Due to the constant popularity of Edinburgh as a city, property prices have doubled approximately every seven years since the 1970s.
As the competition for housing intensifies, "The problem now exists that the average margin between asking price and selling price is approximately 25 per cent [compared to] 10 per cent ten years ago," says Scott Brown, Estate Agency Partner at Warner's Solicitors based in Edinburgh. So what long term consequences will this have for the city's residents? Brown explains, "With the demand for property in Edinburgh set to outstrip supply, this makes it very difficult for first-time buyers to enter the local market."
Callum MacGregor, Director of Alba Residential, an Edinburgh-based letting agency agrees. "The higher the house prices, the higher the age of the first time buyer," he says. So what are the alternatives for those who wish to move from the commuter belt into the city? "Renting, as it is affordable," MacGregor says. "We have seen a difference over the past few years as there are more family lets, as the house prices continue to rise."
It appears that this trend is not going to change as Brown states the critical problem: "[There is] no land left within the city boundaries for new building and this will add further pressure causing house price inflation."
Of course, there is a silver lining. The Edinburgh housing market has consistently provided a good long term investment option, as Brown explains. "In times of recession, the market in Edinburgh will simply plateau rather than fall, unlike other areas in the UK." Then again, as Edinburgh braces itself for the influx of half a million tourists in the coming months for a more ambitious cultural programme than ever before, the residents of the most desirable city in the UK will have more to think about than rising house prices.
