Thursday 30 March 2023
Derby is well established as a highly rewarding property investment location, and it is clear to see why. With strengths in advanced manufacturing and numerous other high-value sectors that are helping to support one of the highest rates of average earnings in Britain.
Additionally, Derby is also part of a region that has wide-ranging plans for employment growth and urban regeneration – forces that will inevitably boost local rental demand.
There are certain criteria which make cities great for investment, and Derby ticks all of them:
- Located in the East Midlands - one of the UK’s fastest-growing regional economies.
- Billions of pounds worth of inward investment secured in the last ten years.
- Major regeneration projects in the pipeline
- A multimillion-pound beneficiary of the Transforming Cities Fund
- A high concentration of high-value industries
- Fast-growing population
- Second highest income per capita outside London
- Massive rental demand providing strong rental yields.
- Affordable property prices
- A university student population of circa 34,000
- Set to benefit from HS2 rail links.
- 4,500 jobs created over the last 3 years with thousands more forecasted over the next decade.
Economic output levels in Derby are ahead of the rest of the East Midlands! – GOV UK
Advanced manufacturing is a key sector for Derby with 22,000 jobs supported by the aerospace, automotive and railway engineering industries, but these are by no means the only high-value sectors in the city. In fact, ‘Rolls Royce is the strongest contributor to Derby’s productive economy’ which has over 14,000 employees.
There are many other important sectors for GVA and employment, according to the UK Government, including
- Financial and insurance activities: Contributing £80,100 GVA per worker.
- Information and communication: Contributing £71,300 GVA per worker.
- Business service activities: Contributing £36,100 GVA per worker.
The local economy has been built on higher skills and relatively “future-proof” roles. Roles which are regularly filled by high-earning, young professionals who should support robust demand for higher quality rental accommodation for years to come.
How Derby will benefit from HS2:
A major project which Derby is set to benefit from is HS2. A new station is to be built at Toton, between Derby and Nottingham, so the city can take advantage of the faster connection times promised by HS2. According to HS2, the station will boast rapid connections to Derby, Nottingham, Leicester, and East Midlands Airport. These connections will include new railway and tram lines, and a new link road to the M1 motorway.
The main journey times to take note of are:
- Birmingham Interchange: 17 minutes
- Birmingham Curzon Street: 20 minutes
- Leeds: 27 minutes
- York: 35 minutes
- London: 52 minutes
The East Midlands HS2 Growth Strategy predicts that, regionally, HS2 could help to create 74,000 new jobs and add £4 billion per annum by 2043.
Central Derby Investment Opportunity
We have a very exciting opportunity located in the heart of Derby, which is forecasted to provide investors with a 56.4% return on their investment in the next 5 years!
Each apartment has been designed to maximise modern-day living providing high-specification interiors as well as a variety of on-site amenities including a gymnasium and café.
Prices are from £185,000 with peppercorn ground rent, gross yields up to 6.49%, and annual income up to £12,000!
Derby would make a great investment location for property investors as the city is thriving with a rapidly growing population, exciting regeneration projects, and strong forecasted capital growth.
Do you want a 56.4% return on your investment? Get in touch today!