Discover Derby Property Investment

Over the last five years, the UK house price index shows that Derby property prices have risen by 28%, meaning the average Derby property investment has increased in value by around £47,000.

Driven by new business, new redevelopment and rising demand for property in the UK’s most central city, Derby property investments remain popular for people that want an affordable entry point into a fast growing market.

While these factors have a huge impact on property prices, the rental market has also seen the benefits.

Now, forecasts suggest that Derby could see both property prices and rental prices rise drastically over the coming years, making Derby property investment increasingly popular for buy-to-let landlords.

According to our Derby property price forecast, Derby is expected to sit at the forefront of East Midlands property growth for 2025 and beyond. With the region set to experience 3.2% average price growth each year until 2028 – an impressive feat considering property prices nationally are anticipated to decline – it’s no wonder that Derby property investment is becoming more popular. In the long-run, JLL suggests that the next four years could see a cumulative 13% property price growth (based on East Midlands projections), making Derby and the surrounding region a fantastic option for searching investors.

As demand continues to grow, this positive performance is expected to also impact rental prices. With only 17,800 rental properties in the market and a population forecast to rise by 50,000 over the next 15 years, the need for quality residential accommodation will increase. As such, investors can expect to see rents across Derby increase, thereby increasing their yields.

The success of Derby property investment is largely driven by the power of its businesses and redevelopment. As an emerging location, factors such as affordability, future forecasts and rental yields are contributing to whether Derby is a good place to invest in property.

Redevelopment across the city largely falls under the umbrella of the 2030 Derby Masterplan, a £3.5 billion project that is funding a new wave of resident amenities and cultural hotspots.

Initial outlines suggest that the masterplan could deliver 4,000 new employment opportunities – which increases to over 10,000 by the end of 2030 – as well as £10 million more to the economy each year.

This alone will add to the already increasing demand for buy-to-let property in Derby, pushing the forecasted price increases even higher.

As the most central city in the UK, Derby bridges the gap between the North and the South with a rail catchment of 800,000 – a key driver in establishing the city’s thriving commercial sector.

With 2.1 million people within 45 minutes travel of Derby, this has attracted a wealth of inward commuters to the city.

At the same time, 46% of the new graduate population in Derby – a demographic that makes up a large portion of the local rental market – moved to the city with no prior links thanks to the employment opportunities and connectivity available.

East Midlands Airport is just moments from the city, offering a new dimension to the area’s transport links by providing international travel to key destinations around the world.

One of the major factors for Derby’s success is the career opportunities it can provide for residents. The city has always been supported by a strong manufacturing industry, home to retail, textiles and professional services.

Now hosting Rolls-Royce, Bombardier and Toyota, these global companies contribute over 45,000 jobs to Derby’s wider economy, attracting an array of professionals and graduates from all over the UK.

A growing digital hub in Derby is putting progressive new businesses in the spotlight, contributing to its position as the 6th most productive city in the UK.

This is helping attract a whole new audience to the city, while driving both property prices and rental prices even further.