7 Things You Don’t Know About Derby

Nestled in the heart of the East Midlands, Derby continues to shine as a city with a rich history and an increasingly bright future, particularly when it comes to property investment. While its pivotal role in the Industrial Revolution remains a key part of its identity, Derby has solidified its position as a significant economic hub with compelling opportunities for investors.

The combination of a robust job market and a persistent demand for rental properties means this East Midlands powerhouse remains a strong contender for buy-to-let investment, rivalling even some of the UK’s major cities. But what makes Derby such an exciting prospect in 2025? Here are seven things you might not know about Derby and why they continue to make it a prime location for investment.

1. Derby Remains a Cornerstone of UK Manufacturing

Derby’s legacy as a manufacturing giant, born from the arrival of the railways in the 19th century, continues to be a defining characteristic. It remains a central hub for the UK’s transport manufacturing sector.

While the landscape might have subtly shifted, Derby still proudly hosts major global players like Rolls-Royce, Alstom (formerly Bombardier Transportation), and Toyota. These companies remain crucial to the local economy, providing significant employment.

The city’s Gross Value Added (GVA) per worker continues to be notably higher than the UK average, a testament to the high-value manufacturing that takes place here. While specific figures fluctuate, Derby’s manufacturing sector remains a key driver of this economic strength. Ongoing investment and innovation within these industries further solidify Derby’s position as a vital manufacturing centre.

2. Property Prices Continue Their Upward Trend

Derby still offers a relatively affordable property market compared to many other UK cities, but its growth trajectory remains strong. Over the past decade (2015-2025), property prices in Derby have seen substantial increases, reflecting the city’s growing appeal. The average property price has increased by 57% in the last decade alone from approximately £132,000 in 2015 to £207,000 in 2025.

This sustained growth is fuelled by ongoing improvements to the city’s amenities and infrastructure, attracting both homebuyers and renters. The demand in the market continues to drive prices upwards.

While specific forecasts can vary, the general consensus is that Derby’s property market continues to show potential for further appreciation. This sustained growth, coupled with its relative affordability, makes Derby an attractive proposition for long-term property investment.

3. The Derby City Centre Masterplan 2030 is Gaining Momentum

The ambitious Derby City Centre Masterplan 2030 is well underway, continuing to transform the city centre and attract significant investment. The goal of leveraging up to £3.5 billion in inward investment to enhance Derby’s amenities and celebrate its heritage remains a key focus.

Significant progress has been made on key projects. The Becketwell Performance Venue, a cornerstone of the regeneration, is now open and hosting a variety of events, bringing new vibrancy to the city centre. The Hi-Tech Business Park is also developing, attracting new businesses and creating skilled employment opportunities.

These developments, along with ongoing improvements to public spaces and infrastructure, are enhancing Derby’s appeal as a place to live, work, and visit, further boosting its investment potential.

4. Derby Remains a Top City for Graduate Salaries in the Region

Derby continues to be a strong contender for offering high graduate salaries amongst regional cities in the UK. While London and Edinburgh might still offer higher overall starting salaries, Derby provides a competitive edge for graduates seeking opportunities outside the capital, with TotalJobs noting that the average graduate salary in the city is £25,000.

This is a significant factor for property investors, as graduates represent a key demographic for the rental market. These young professionals, often forming a large part of ‘Generation Rent’, are attracted to cities with strong career prospects and good quality of life. Derby’s continued ability to offer competitive starting salaries makes it a magnet for this demographic.

5. Derby’s Rental Market Continues to Demonstrate Strong Growth

Derby’s rental market has continued its upward trajectory, with the twelve months to January 2025 seeing an average rental increase of 11.9%. This is a significant uplift in just one year, especially when considering that the broader East Midlands region only saw rental growth of 8.3%. The combination of a strong employment base and a growing younger population ensures a consistent demand for rental properties.

Average rental yields in Derby remain attractive, often surpassing the national average. Based off the January 2025 average property value of £207,000, and the average rent of £819, Derby yields sit at approximately 4.75%, indicating the potential for strong returns.

6. Nightingale Quarter is Transforming the Cityscape

The Nightingale Quarter, one of the UK’s largest city centre regeneration projects, is now significantly more developed. This 18.5-acre site, on the former Nightingale Hospital grounds, has seen hundreds of new homes and apartments completed, breathing new life into this historic area of the city.

The iconic Pepper Pots have been meticulously restored. One now serves as a residents-only gym, while the other offers a unique eatery, adding character and amenity to the development. The inclusion of significant green spaces further enhances the appeal of Nightingale Quarter as a desirable place to live. This transformative project has significantly contributed to the overall regeneration of Derby’s city centre.

7. Derby’s Central Location and Rail Connectivity Remain a Major Asset

Derby’s strategic location at the heart of the UK continues to provide excellent transport links across the country. Its rail catchment area remains substantial, connecting it to major cities and regions.

While train journey times can be subject to updates and schedules, Derby still offers convenient access to major hubs. Birmingham remains a short commute, and connections to Manchester and London are readily available.

This excellent connectivity continues to attract both transient tenants and a significant number of commuters who work in Derby but reside in the wider region. The ease of access reinforces Derby’s appeal as a central and well-connected location, supporting both its economy and its property market.

Derby – Still a Prime Investment Opportunity in 2025

As we move further into 2025, the factors that made Derby an attractive investment location for many years have only been reinforced. With a strong manufacturing base, a growing economy, significant regeneration projects underway, and a thriving rental market, Derby continues to offer compelling opportunities for property investors. If you’re looking for an ‘underdog’ city with a proven track record and a bright future, Derby remains a strong contender to find your next property investment.