Why Should You Invest in a 2-Bed Apartment in Derby?
Each property type comes with its own benefits and drawbacks and 2-bed apartments are no different. While 2020 and lockdown saw many people leave city-centres for rural areas, this seems like it was a temporary measure.
City living is making a return and already we’re seeing markets such as Derby prepare to capitalise. Over the last 10 years, Derby property prices have risen by £61,000, highlighting why property for sale in Derby continues to be a clear opportunity.
In the past 12 months, the amount of renters moving away from single-let properties has risen by 312% in search of bigger homes that have room for couples or sharers.
While couples once dominated the tenant pool for 2-bed apartments, changes in tenant priorities have broadened the scope of 2-bed apartments in Derby.
Derby 2-Bedroom Apartment Property Prices
Two-bedroom apartments are typically a good choice for investors that want long-term, consistent rental returns from couples or sharers.
Because of the space they have on offer, two-bedroom apartments in Derby are an accessible and flexible asset that offer the potential for both high capital growth and consistent rental yields.
Derby property prices have risen by £67,000 over the last 10 years, buoyed by an influx of demand for Derby property, although experts suggest that the next four years could see an additional 17.5% increase.
When we consider Derby apartments for sale as a specific asset, prices have risen by 31.5% over the last decade, which equals around £24,900.
Likewise, Derby apartments saw an increase of 4.1% over the last year, which translates to around £4,100.
With Derby still a relatively affordable property market despite this growth, we’re increasingly seeing answers to the question: why invest in Derby?
Rental Yields
Home to 17,800 rental properties, Derby has a much larger population of 265,500 that is forecast to rise by 20% by 2037.
This alone is a clear example of why property prices are on the increase, simultaneously highlighting the disparity between supply and demand across the city.
The rental market itself is supported by a demographic that is growing in size and increasingly likely to rent. Around 48% of the population is under-35, while 64% of Derby workers live in the city – two types of potential renter for a two-bedroom Derby apartment.
Outside of young professionals, Derby is attractive to both graduates and commuting workers, both of whom also have a large impact on property demand in the city. Derby has the highest graduate salary in the UK outside of London and Edinburgh, which plays a huge part in attracting new graduates.
As a Buy-to-Let hotspot, a number of properties in Derby surpass 5% rental yields, meaning a 2-bed apartment in the UK’s most central can be a potentially lucrative investment asset. The ongoing Derby Masterplan 2030 will make Derby property investments more competitive in the years to come, with rental prices expected to rise by 12%.
