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Overview of Student Property Investment in Derby
Derby is a great place for those who want to invest in student properties because it has a growing large student population of more than 20,000 students, low property prices, and high rental returns.
With two big universities and ongoing building projects like the Becketwell Regeneration Project, there is a growing need for good student housing, especially in the city centre. Add excellent transport links and a thriving local economy, and it’s clear why so many investors are turning to Derby for long-term growth and reliable returns.
Before we discuss more, here are some expert-recommended properties in high-demand locations worth exploring.
Located near East Midlands Airport, Derby offers exceptional investment opportunities with an average house price significantly below the national average, making it an attractive choice for both new and seasoned property investors.
Expert Picks: Best New Build Student Accommodations in and Around Derby
The Mill
The Mill, located in the heart of Derby’s city centre, is a standout opportunity for investors in student property investment. As part of the Osmaston Works project, this old Victorian mill has been turned into 70 high-end serviced apartments that combine old-world charm with modern comfort. The Mill is in a great spot to attract students, young workers and short-term tenants because it is close to important educational institutions and Derby’s busy commercial areas.
£646 pcm
5%
Q4 2025
250 years
- Provides the charm of a traditional building with the convenience of a new apartment.
- Thoughtfully designed apartments for diverse lifestyle needs, including work, relaxation, and entertainment.
- Located in Derby’s city centre.
- High tenant demand due to its proximity to Derby business hubs and leisure spots.
- Potential for strong rental yields through student accommodation.
Graduation House
Graduation House, just 15 miles from Derby, is a purpose-built development catering to the growing demand for student accommodation. This project fulfils all the needs of today’s students. With its 162 fully furnished units and great features like fast Wi-Fi, common areas, and a game room. Its form makes tenants happy and gives landlords in the Purpose-Built Student Accommodation (PBSA) market a great chance to make money from rent.
£737 pcm
8.84%
Q4 2025
999 years
- Student flats 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.
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Tudor House
Tudor House, located 15 miles from Derby, offers 20 boutique-style, fully serviced apartments ideal for student property investors. With flexible payment plans and just a 10% deposit, it’s a perfect entry point for those looking to tap into the lucrative student accommodation market. These energy-efficient apartments are designed for both short and long-term lets, appealing to students and professionals seeking modern, convenient housing.
£650 pcm
6%
10%
Ready-Now
- 20 stylish, student 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, located 12 miles from Derby, offers 74 premium serviced apartments designed for short-term rentals and student accommodation. With a rich history rooted in Victorian brewing, this development merges heritage with modern living. Its strategic location near Derby and access to the Peak District make it appealing to both students and short-term tenants seeking culture and convenience.
£800 pcm
7%
August 2025
999 Years
- Average £80 per night for a one-bedroom flat, 74 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.
Long Row
Situated 15 miles from Derby, Long Row is a newly developed project designed to maximise appeal for student property investors. Students and people renting for a short time love it because it’s close to fun things to do at night, great restaurants, and tourist destinations. Larger lease terms and modern flats that come fully furnished ensure stable and appealing investment returns.
£1,000 pcm
Off-Plan
Q3 2024
250 Years
- High yield, tenant satisfaction designed student apartments.
- Perfect for short-term visits, close access to Derby’s main centre.
- Up to 250-year leases guarantee safe investment returns.
- Designed to maximise occupancy rates with contemporary, fully furnished flats.
- Just a short walk distance to nearby facilities.
Benefits of Investing in Student Properties
Investing in student housing is one of the most certain methods to produce long-term, consistent revenue. Here’s why.
High Occupancy Rates
Particularly in university cities like Derby, student properties enjoy regularly high occupancy rates, often exceeding 95%. The University of Derby has more than 20,000 students, hence there is a constant, high need for decent accommodation.
Simply said, students need somewhere to live; apartments near the Derby city centre or university are always scooped up fast. From what I’ve seen, well-kept, well-located homes have few vacant periods.
Stable Rental Income
The benefit of renting to students is the stability it provides. Academic calendars are predictable, so your rental money will flow like clockwork. Derby provides a distinct advantage here. Rental yields for student houses in the city are around 6%, and when combined with Derby’s low residential property prices, the returns can be quite appealing.
Properties near universities are attractive to both students and investors seeking stable income.
If you really want to invest in Derby real estate, I’d highly recommend you to estimate how much money you could make by renting it out. If you know how much passive income you can expect to make, you can make better choices about investment.
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.
A passive income calculator offers a clear way forward, whether you’re looking for a steady monthly income or building long-term financial security.
Strategically Handpicked Properties for Optimal Yield and Capital Appreciation
Growing Demand for Purpose-Built Student Accommodation (PBSA)
Unquestionably, today’s students want more from their accommodation. Demand for PBSA, with fast Wi-Fi, study places, and shared spaces—complete with In Derby, this trend is obvious: there is a notable rise in purpose-built projects meant for this market. Investing in PBSA not only draws renters but you can also charge premium rents.
A Solid Investment for the Future
Now is the moment to consider Derby property investment, as the property prices here remain significantly below the national average. As of 2024, the average property price in Derby is approximately £209,000, compared to the UK national average of £290,000 and the student population is expected to rise much more.
Based on my years of expertise, I have noticed how well investing in student housing strikes a fantastic mix of stability and good returns. Derby student properties should be top on your list if you are seeking an investment with low risk and consistent development potential.
Why Invest in Derby?
Economic Growth and Tenant Stability
With a Gross Value Added (GVA) per worker that is about 16% higher than the regional average, Derby’s economy is one of the fastest-growing in the UK. When the economy is doing well, it attracts both young workers and students, which keeps the demand for rental properties high.
The creation of new jobs further boosts this demand, ensuring a vibrant rental market. As someone who has closely followed the local economy, I’ve seen firsthand how Derby’s business hubs, like Pride Park and Infinity Park, create stability in the tenant market.
Affordability Compared to Other UK Cities
One of Derby’s most significant advantages is the price. The average house price here, as of August 2024, is quite low—about £209,000—much below the national average. Derby offers a fairly affordable entry point for investors when compared to locations like London.
Also, over the past year, rental values in the city have climbed by 10.4%, and this upward trend isn’t slowing down. For this reason, many of our clients are looking at this region for their next buy-to-let investment.
Infrastructure Developments Boosting Derby’s Appeal
In recent years, the city’s infrastructure has grown in amazing ways. Derby’s city heart is changing because of projects like the Becketwell regeneration scheme, with Derby City Council estimating the total cost of this project is £200 million and improvements in the Cathedral Quarter.
Moreover, the Derby City Centre Masterplan with an estimated £ 3.5 billion investment is going to make more significant infrastructure changes that will help the city grow even more.
Not only are these major improvements making Derby look more modern and nice, but they’re also making more people want to live in certain areas. For investors, this means that homes in and near the city heart are more sought after than ever, with the chance of both high rental rates and capital growth.
University-Driven Demand and Growing Tenant Base
With over 20,000 students enrolled at the University of Derby, the city has a consistent demand for student properties. The growing popularity of student apartments creates yet another level of possibilities.
Students, who are ready to pay a premium for first-rate accommodation, find modern, well-located projects especially attractive. Investing in PBSA in Derby, from my experience, guarantees not only a consistent tenant base but also a notable return on your property portfolio.
Derby Average Rental Yields
Around 6% is a good rental return in Derby, which is one of the best in the East Midlands. When you add in the fact that property prices in the city are lower than average, you have a great chance for both new and experienced buyers. Derby strikes the right balance between price and return on investment, which is something that all investors should think about when they are making their next move.
Derby isn’t just a great place to live—it’s also a good choice for owners who want to make money off of its growing economy, low housing costs, and active student population.
Student Property Investment Hotspots in Derby
Investing in student properties in Derby offers attractive rental yields across various key areas:
- Derby City Centre: Because of their close proximity to Derby Business School and the Markeaton Street campus of the University of Derby, properties here are much sought after. From this demand, the rental returns are solid here, usually between 6% and 7%. The continuous Becketwell project is improving the attractiveness of the region even further, thereby maybe increasing rental returns and property values.
- Cathedral Quarter and Nightingale Quarter: Attracting both students and young working professionals, these areas combine modern conveniences with historic appeal. Reflecting their appeal and the quality of the available houses, yields in these areas usually vary from 5.5% to 6.5%.
- Arboretum and Normanton: For investors seeking more affordable options, these areas offer properties with yields averaging around 6% to 7%. Their proximity to the University of Derby’s Kedleston Road campus ensures a steady demand from the student population.
- Pride Park and Infinity Park: Primarily attracting young professionals and postgraduate students, properties in these zones offer rental yields between 5% and 6%. Major companies like Rolls Royce and first-rate rail links help to explain the stability and appeal of these investment zones.
These figures highlight the potential for significant returns on investment in Derby’s student property market, making it a compelling choice for property investors.
Conclusion
Affordable home costs, high rental yields, and a growing student population make Derby a great place to invest in student housing. High-demand neighbourhoods include the city heart, Cathedral Quarter, and Nightingale Quarter, while Arboretum and Normanton are great places to invest with low costs and high returns.
Derby is a safe and profitable housing market for investors seeking steady income and long-term growth, thanks to ongoing regeneration projects, a growing local economy and rising demand for housing.
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