Discover Derby Property Investment

Thinking about Derby property investment? Take a look at the investor resources we have around investing in Derby property.

Why Choose Derby Property Investment?

Over the last decade, the UK house price index shows that Derby property prices have risen by 58%, meaning the average Derby property investment has increased in value by around £75,300.

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 from JLL 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.

How Will Property Prices Impact Derby Property Investment in 2024?

According to our Derby property price forecast, Derby is expected to sit at the forefront of East Midlands property growth for 2024 and beyond. With the region set to experience 2% price growth in 2024 – 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 16.5% 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.

Is Derby a Good Place to Invest in Property?

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.

How Are Transport Links Impacting Derby Property Investment?

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.

How Is Business Transforming Derby Property Investments?

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.

What businesses are in Derby? Plus Icon

As the UK’s 6th most productive city, Derby has one of the fastest growing economies in the country.

While 4,500 jobs have been created over the past three years alone, the city’s expanding collection of global employers will continue to push this number in the years to come.

Derby has long been renowned for its manufacturing sector and houses several international companies.

With Rolls Royce, Bombardier Transportation and Toyota all calling Derby home and housing nearly 45,000 professionals, it’s a sector that continues to support Derby’s impressive growth.

How far is Derby from Birmingham? Plus Icon

Derby is the most central city in the UK, with transport links that reflect this.

By train, Derby is just 45 minutes from Birmingham and around 60 minutes by car. This not only brings Derby within a commutable distance of the second city, but it gives residents in both Derby and Birmingham more choice for both living and working.

What is the population of Derby? Plus Icon

Currently, Derby’s population is sitting at 259,000, but with the continued growth of the city, this is forecasted to reach as high as 312,000 by 2037.

Derby has a very young population, with 48% of the city’s overall population under 35.

The majority of this younger demographic are either students or graduates – Derby not only has a student population of over 30,000, but the city also has a 23% graduate rate.

With a growing base of students and young professionals, the demand for rental property is only increasing.

What regeneration projects are underway in Derby? Plus Icon

The largest regeneration project in Derby is by far and away the Derby City Centre Masterplan. With a plan to leverage £3.5 billion in investment, create 4,000 new jobs and 1,900 new homes, the plan is creating new public spaces, transport infrastructure and business parks, as well as new leisure facilities.

One of the main attractions of the wider plan is the Becketwell Performance Venue, which will create hundreds of new jobs, generate £10 million for the local economy and attract an additional 250,000 visitors to the city per year.

While these plans continue to transform Derby, the city has already seen £3 billion in investment over the last 10 years, building the foundations of a strong and prosperous rental market.

Why invest in Derby property? Plus Icon

As one of the most affordable places in the UK, Derby remains a clear opportunity for investors to generate both rental returns and capital growth, thanks to an established large-scale regeneration plan. 

Over the last decade, Derby property prices have risen by £75,300 on average, supported by new levels of demand for residential properties. This has been driven by three core audiences – graduates staying on after university, young professionals moving for the career opportunities at key employers in the city and older workers looking for more affordable living. 

This rising population  is highlighting the potential of Derby property going forward as well. With JLL’s projections for the East Midlands looking particularly impressive, Derby and the surrounding areas could see property values increase by 16.5% from 2024 to 2027, demonstrating the need for investors to consider getting in early. As new transport links and amenities continue to facilitate the city’s growing rental sector, expect the disparity between supply and demand to grow.

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