Will Derby be a good investment in 2024?

Impact of Property Prices on Derby Property Investment in 2024

• Price Growth Expectation: Anticipating a remarkable 17.5% price growth over the next four years.
• Financial Gains: This projected growth could translate into approximately ￡32,500, elevating the average Derby property investment to a value of ￡215,425.
• Rental Market Influence: As demand increases, rental prices are also likely to surge, driven by a shortage of available rental properties (only 17,800) and a predicted population increase of 50,000 over the next 15 years.
• JLL's Forecast: JLL predicts a 12% rise in rental prices by 2026, highlighting the potential for a lucrative secondary income stream from property investments in Derby.

Is Derby a Viable Location for Property Investment?

• Factors at Play: The viability of Derby as a property investment destination hinges on several factors, including the strength of its businesses, affordability, future prospects, and rental yields.
• The 2030 Derby Masterplan: The city's redevelopment falls under the 2030 Derby Masterplan, a ￡3.5 billion initiative funding new resident amenities and cultural attractions.
• Economic Impact: Initial estimates suggest that the masterplan could generate 4,000 new employment opportunities initially, increasing to over 10,000 by 2030, injecting an additional ￡10 million into the local economy annually.
• Growing Demand: This surge in employment opportunities is set to bolster the demand for buy-to-let properties in Derby, potentially further driving up forecasted price increases.

Transport Links and Their Influence on Derby Property Investment

• Central Location: Positioned as the most central city in the UK, Derby serves as a crucial link between the North and the South, boasting a rail catchment area of 800,000.
• Inward Commuters: The city's strategic location has attracted a significant number of inward commuters, with 2.1 million people residing within a 45-minute travel radius of Derby.
• Graduate Appeal: A notable 46% of the new graduate population in Derby, a substantial portion of the local rental market, moved to the city due to employment opportunities and excellent connectivity.
• East Midlands Airport: The proximity of East Midlands Airport provides international travel options, enhancing the city's transport connectivity.

Business Influence on Derby Property Investments

• Career Opportunities: Derby's success can be attributed to the career opportunities it offers. Historically supported by a strong manufacturing industry, the city is home to prominent global companies such as Rolls-Royce, Bombardier, and Toyota, collectively providing over 45,000 jobs.
• Digital Hub Growth: The emergence of a growing digital hub in Derby has put innovative new businesses in the spotlight, contributing to its status as the 6th most productive city in the UK.
• Audience Attraction: This dynamic environment is attracting a diverse audience to the city, further propelling both property prices and rental rates.

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