SCOTLAND'S capital is gaining ground on London as a top destination for international buyers looking to relocate to a new home in the UK.
Estate agents have reported a rise in the number of properties being snapped up by foreigners looking to settle in Edinburgh.
The city's world-class cultural scene, its financial institutions, top-quality schools and universities – and even its proximity to the Whisky Trail – are seen by agents as the main reasons for the surge in interest.
Growing numbers of Russians and Chinese have bought in the capital, while properties have also been sold to South Africans, Kenyans, Americans and people from Singapore and Taiwan.
The influx has come at the top end of the market, with many of the properties coming under foreign ownership worth upwards of £600,000.
Property specialists Knight Frank, which deals in homes at the top end of the market, says that last year 12% of all the properties it sold in the city went to foreign buyers.
Its Edinburgh office dealt with six different nationalities last year, and sold 7% of its "prime stock" to people from outwith the UK.
Matthew Munro, partner and head of city sales, said: "London is not the only city to see an influx of foreign buyers. The UK is still internationally perceived to be a safe economy and, combined with a weak sterling, this has led to a significant increase in foreign buyers over the last year.
"In the last quarter of 2011 we sold three significant Edinburgh properties to buyers from both Asia and Russia. If they see something they like, and it adds up, they make very fast decisions and look to close a deal quickly with little fuss.
"Increasingly we are seeing Asian parents, who have children at school in the capital, wishing to put down roots here and buy a permanent home.
"Whisky also comes into the equation, and we are often asked about what Edinburgh has to offer as well as how accessible the Malt Whisky Trail is."
Mr Munro added the influx is unlikely to end soon and could affect the city's ethnic make-up within a decade. He said: 'We cannot see interest from international buyers slowing and it will be interesting to see what will potentially be a far more diverse city population in five to 10 years' time."
Maurice Allan, an associate in Strutt & Parker's Edinburgh residential department, said the newcomers were looking to settle rather than buying homes as an investment.
He said: "We have sold a house in Inverleith, a west end main door apartment and a detached house in the Grange to Russian buyers. All three were premium 'best-in-class' properties in some of Edinburgh's most popular residential areas.
"The buyers were interested in good independent schools such as Fettes, The Edinburgh Academy, Stewart's Melville, St George's and Mary Erskine.
He added: "One, if not two, of the buyers were in a position where the husband's job involved a substantial amount of travel but the wife and family were going to be based in Edinburgh for most of the year."
One expert said that, with London's property market becoming too expensive, Edinburgh is now first choice for many international buyers looking for a base in the UK.
Dr John Boyle, head of research at Rettie & Co, said: "Edinburgh is seen as a safe place to take your money, and that's attractive to many Europeans given the financial uncertainty on the continent.
"It also has excellent schools and transport links, both with the rest of the UK and with Europe, making it an ideal base for many Asian families looking to come to the UK.
"We've found there's a lot of interest from people in Singapore and Taiwan in luxury flats in the city."
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