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Brief Overview of Serviced Apartments
Serviced apartments have all the appealing aspects of hotels and the comforts of home. Modern kitchens and perks like free Wi-Fi are included. Others who like them are tourists and business travellers who want to be able to change their plans, especially in busy areas like Derby city centre.
Real estate investors will benefit from these houses because they can make a steady income, are in high demand, and appeal to a wide range of guests. This makes them a good choice for both short-term gains and long-term portfolio growth.
Top Picks: Serviced Apartments in Derby for Your Investment Portfolio
The Mill
The Mill is in the middle of Derby’s city centre. It is a historic Victorian Mill that has been carefully converted into 70 high-end serviced apartments. This project, called Osmaston Works, blends old and new living styles.
It’s perfect for investors looking for apartments for sale in a great area. Modern lives are taken into account in every serviced apartment, whether it’s for a short-term stay, working from home, or just relaxing in style. Many apartments are within walking distance of Derby city centre, making them ideal for both work and leisure.
£646 pcm
250 Years
OFF-Plan
Q4 2025
- Offers the charm of a traditional building with the convenience of a serviced apartment.
- Thoughtfully designed for diverse lifestyle needs, including work, relaxation, and entertainment.
- Located in Derby’s city centre, a hotspot for serviced apartments.
- High tenant demand due to its proximity to Derby business hubs and leisure spots.
- Potential for strong rental yields through serviced accommodation.
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Graduation House
Graduation House is a high-yield investment opportunity just 15 miles from Derby. This development focuses on the growing demand for student accommodation within the Purpose-Built Student Accommodation (PBSA) market. Featuring 162 fully furnished units, these apartments include amenities such as superfast Wi-Fi, communal spaces, and a games room—ideal for short-term lets tailored to student living.
£737 pcm
999 Years
OFF-Plan
Q4 2025
- Serviced apartments that are fully prepared and come with a lot of extras, like a gym, a laundry room, and places to study.
- It is in a great spot which makes it appealing to both students and businessmen.
- Designed to get the most rental income and be very appealing to tenants.
- Close to colleges and important transport routes, so there is demand all year.
Tudor House
Located 15 miles from Derby, Tudor House is a boutique collection of 20 luxury serviced apartments. These beautifully designed flats offer tenants a great place to live and make investing easy for investors with just a 10% down payment and flexible payment plans. Also, these apartments are great for managed accommodations because they can be rented for short or long periods of time.
£650 pcm
6%
10%
Ready-Now
- 20 stylish, fully serviced apartments designed for investor and tenant satisfaction.
- Flexible payment options and a low deposit make it ideal for first-time investors.
- Located close to leisure and business locations, attracting a diverse tenant base.
- Designed with energy-efficient features to reduce operating costs for investors.
Crown Works
Crown Works offers 74 premium serviced apartments, located just 12 miles from Derby. Each unit is intended to fit a variety of lifestyles, making them perfect for short-term rentals, work-related travellers, and vacationers. Crown Works has a rich history that goes back to the Victorian brewing business.
It is a unique mix of heritage and modern living that makes it appealing to people who want to experience culture. The nearby Peak District National Park adds an extra layer of appeal for nature enthusiasts and weekend travellers.
£800 pcm
35%
999 Years
Off-Plan
- Average £80 per night for a one-bedroom flat, 74 serviced flats with short-term let potential.
- Modern conveniences mixed with historically influenced architecture.
- A prime site near Derby to meet the rising need for serviced apartments.
- For both business and pleasure visitors, easy access to the Peak District and Derby city centre appeals.
LongRow
Long Row, situated 15 miles from Derby, is perfectly positioned near vibrant bars, fine dining restaurants, and key tourist attractions. Investors interested in serviced apartments and short-term rentals would find significant opportunities in this new construction. For residential or serviced accommodation, its prominent location and extended lease terms provide stability and attractiveness as a source of income.
£1,000 pcm
Q3 2024
250 Years
Off-Plan
- High yield, tenant satisfaction designed serviced apartments.
- Perfect for short-term visits, close access to Derby’s main centre.
- Up to 250 years long leases guarantee safe investment returns.
- Just a short walk distances to nearby facilities
- Designed to maximise occupancy rates with contemporary, fully furnished flats.
Why Invest in Serviced Apartments in Derby?
Buying serviced flats in Derby is a great way for real estate investors to make money. The city has a strong economy, rising demand, and lots of long-term promise, so it is a great place to invest that will pay off. Derby has a lot to offer, whether you’re looking for rental income, capital growth, or both.
High Demand and Occupancy Rates
Demand for Derby serviced apartments is skyrocketing. Over the past year, rental values in the city have climbed by 10.4%, and this upward trend isn’t slowing down.
Source: ONS
What’s driving this? The city’s appeals to a mix of tenants, including young professional travellers working with major employers like Rolls-Royce, Bombardier, and Toyota, as well as students from the University of Derby.
These serviced apartments benefit from proximity to major Derby business parks, attracting a steady stream of professional tenants. Each property is conveniently located near key amenities, business hubs, and transport links for maximum tenant satisfaction.
Serviced apartments are in high demand for both short-term lets and longer stays, with occupancy rates rivalling those in much larger cities. For investors, this means a consistent income stream and a high chance of filling units year-round.
Strong ROI Potential
Derby’s serviced flats are delivering some of the best returns in the UK property market. Rental yields in the city centre are hitting impressive levels of up to 6%, which is far better than what traditional buy-to-let properties offer in other cities.
Combine this with Derby’s relatively affordable property prices and its rising rental demand, and you’ve got the perfect formula for strong and reliable returns.
Whether you’re looking to build your portfolio or earn passive income, the city’s serviced accommodation market offers a solid, low-risk investment opportunity.
Those who are serious about investing in serviced apartments in Derby need to estimate how much money they could make from renting them out. It will help you make better choices if you know how much passive income you can expect to make.
Consider using a Passive Income Calculator. This tool will give you a personalised investment strategy for your goals, showing how much to invest and the timeline to achieve your financial objectives.
Whether you’re aiming for steady monthly income or building long-term financial security, a passive income calculator provides a clear path forward.
Strategically Handpicked Properties for Optimal Yield and Capital Appreciation
Economic Growth in Derby
Derby has a strong economy, which makes it an attractive location for companies and people to live. Big companies like Rolls-Royce, Toyota, and Bombardier are based there. These companies help the city’s economy grow and stay stable. The GDP of Derby grew by 3.2% in 2023, and the Derby City Centre Masterplan is going to make more infrastructure changes that will help the city grow even more.
As the economy grows, more workers and travellers will need good places to stay. This is good news for real estate investors. People are especially interested in serviced apartments near big business parks in Derby, which means they will rent quickly.
Diverse Tenant Base
Derby’s strong point is its wide range of tenants. Serviced apartments are always in high demand because of business travellers here for work, students looking for flexible living, and even families visiting nearby attractions like the Peak District.
This variety ensures year-round occupancy and protects your investment from relying too heavily on a single market segment. Whether it’s short-term lets for professionals or longer stays for students, serviced flats cater to all kinds of tenants, which is a big win for investors.
Hassle-Free Management
Property management doesn’t have to be a pain. As long as you work with a reputable company like Flambard Williams, the daily tasks will be handled effectively. We can handle anything from renter problems to scheduling repairs.
Enjoy the peace of mind that comes with keeping up with property maintenance and the benefit of real passive income. Therefore, serviced flats are an even better choice for investors who want a safe return without having to be involved.
Future Growth Opportunities
There will likely be even more growth in the Derby real estate market in the years to come. The city’s population is expected to grow by 5.3% over the next 20 years. This means that more people will want to stay in nice places.
Through the Derby City Centre Masterplan, 4,000 new jobs and 1,900 new homes will be built by 2030. This will make Derby an even better place to do business in the UK. Keep an eye on Derby if you want to play the long game.
What Makes a Serviced Apartment Profitable?
Investing in serviced apartments can be a game-changer, but profitability depends on a few key factors. It’s not just about having a property—it’s about creating an experience that guests value and are willing to pay a premium for.
Location: Proximity to City Centres, Business Hubs, and Attractions
The location matters a lot. You’ll already be ahead of the game if your Derby serviced apartment is close to the city centre of Derby or big business hubs like the Rolls-Royce or Toyota offices.
Business travellers love the convenience of staying close to where they work, and tourists prefer being near attractions like the Peak District or Derby’s vibrant restaurants. I’ve seen properties with easy access to East Midlands Airport consistently booked, simply because guests value how connected they feel.
Amenities: High-Speed Wi-Fi, Parking, Gym Facilities, and Kitchen Setups
When you book a serviced room, think about what you’d want. Fast Wi-Fi? Without a doubt, guests need stable internet whether they’re using it for Zoom calls or Netflix binges. We also need to think about parking.
Secure on-site parking or even accessible street parking can make your property stand out, especially in a busy city. Fully equipped kitchens and gym facilities also add major value. I’ve found that guests are willing to pay more for flats with these extras because they make their stay so much easier.
Fully equipped modern kitchen facilities ensure guests enjoy the comforts of home during their stay. Secure private parking options make these properties even more appealing to tenants seeking convenience and safety. The stylish Street Friar Gate apartments, situated on historic streets, combine charm with modern living for tenants.
Property Size and Layout: Suitability for Solo Travellers or Groups
One of the biggest lessons I’ve learned is that flexibility pays off. Smaller serviced flats with one bedroom are perfect for business travellers or couples, but groups look for more space.
If your property has a mix of layouts, you can cater to both short-term stays and longer lets. I’ve seen larger apartments bring in a premium because they’re harder to find in popular areas, yet always in demand.
Modern Interior Design: Impact on Tenant Satisfaction and Occupancy
Here’s a tip: don’t skimp on the interiors. A modern, clean, and thoughtfully designed space makes a huge difference in how guests perceive your apartment. One of our clients had properties that struggled to rent until they updated the furniture and added a splash of personality—think bright cushions, sleek lighting, and quality linens.
It’s amazing how much small changes can boost your reviews and encourage repeat bookings. A great design isn’t just about aesthetics—it’s about creating a space where guests feel comfortable and cared for.
Additional Services: Concierge, Laundry, and Dining Options
If you really want to stand out, offer a little extra. Guests who aren’t familiar with the area may find concierge services helpful during their stay. When people stay for a long time, they love it when there is a laundry room on site.
Some places have also teamed up with local restaurants or added dining choices so that guests feel like they’re getting more than just a place to sleep. You can charge more and keep people coming back with these little things.
Conclusion
Investing in serviced flats in Derby is a great choice if you want a property that does a lot for you. The city has a strong economy, more and more people are moving there, and tourists, business visitors, and students keep coming back. This makes it a great place to rent out and expand in the long run.
Derby has everything a good investment should have: a great location close to the city heart, modern amenities that guests love, and a strong chance for capital appreciation.
There has never been a better time to get into this market, since big plans like the City Centre Masterplan are about to take it to the next level. Serviced apartments in Derby are a great way to make a smart, easy investment that will pay off in the short and long run.
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