Derby Location Guide - Frater Property Partners

Invest In Derby

Last reviewed: June 2026, against ONS, Derby City Council and Savills data

Derby contributes over £15 billion in economic output and is home to over 276,000 people, with a further 2.1 million living within a 45-minute commute. Savills’ most recent forecast (June 2026) puts East Midlands house price growth at 19.0% over the five years to 2030 — above the UK average of 18.5%. At an average property price of around £205,000, well below both the East Midlands and UK averages, Derby remains one of the most affordable major UK cities to invest in.

Derby Economy & Population

The local people and businesses within Derby contribute over £15bn in economic output to the UK’s economy.
Derby is home to over 276,000 people, with a further 2.1 million people living within a 45-minute radius — making it ideal for commuters.

Regeneration & Institutional Investment

The city centre 2030 masterplan transformation in Derby is the most notable as one of he biggest city centre investment scheme’s in recent years across the UK.

Derby is undergoing a significant transformation via a series of regeneration projects aimed at revitalizing the city centre, enhancing infrastructure, and boosting the local economy.
£6bn pounds worth of investment is being deployed into Derby city centre, which will improve residential, commercial & leisure facilities in the area.
With 5 Residential Developments amassing to more than £3bn alone Derby will see a huge increase in residential property being built which will be available to investors to obtain for their Buy to Let portfolios.

Connectivity & Transport

Major Motorway Access: M1 and M42: Derby is well-connected via major motorways, making it easy to reach other parts of the UK.
Extensive Rail Network: The city’s rail station offers regular services to major urban centres like London, Birmingham, and Manchester, facilitating quick and convenient travel.
Proximity to International Travel: East Midlands Airport: Just a short drive away, providing international connectivity for both business and leisure travel.

Employment

Over 300 employers across Engineering, Aerospace & Nuclear — attracting a highly skilled workforce to the area. These employers include Rolls-Royce, Alstom (which builds and maintains trains at its historic Litchurch Lane Works) and JCB. Other companies in the area include Toyota Manufacturing, Bloor Investments, Greencore, Bowmer & Kirkland and East Midlands Railway.
Alstom’s Litchurch Lane Works in Derby — the UK’s only facility that designs, builds and tests trains from scratch — recently secured a £370m contract building new trains for the Elizabeth line, securing thousands of skilled manufacturing jobs in the city.
Due to the quality of employment in the city, the average salary is very high compared to the rest of the country, meaning property is affordable for the local community, offering large scope for capital growth.

University & Education

The University of Derby attracts around 20,000 students.
Beyond the university, the city offers numerous opportunities for on-the-job training across a wide range of businesses, thanks to the diverse scope of work available.

Lifestyle & Amenities

Vibrant Cultural Scene: Home to theatres, art galleries, and museums that celebrate local history and contemporary creativity.
Diverse Retail and Dining Options: The Derbion (formerly Westfield/intu Derby) is one of the UK’s largest shopping centres, and is itself undergoing a major masterplan that will add hundreds of new homes to the city centre.
A wide variety of cafes and restaurants make Derby a food – lovers destination.
Expansive Green Spaces and Recreation: Home to many National Trust Homes such as Calke Abbey, Keddleston Hall and Hardwick Hall.
Community Engagement and Local Initiatives: Local Events promote local community encourage social interaction and civil partnership.

Previous Growth & Performance

Although Derby has grown steadily over the last few years, property prices are still very affordable for the locals meaning future growth is expected as demand for these properties remains high.
Derby remains one of the most affordable major UK cities to invest in. At an average of £205,000, property in Derby sits well below both the East Midlands average of £242,000 and the UK average of £270,000, a gap that leaves significant room for future capital growth as the city’s regeneration pipeline matures.

Forecasts for Growth

Savills’ most recent forecast (June 2026) puts East Midlands house price growth at 19.0% over the five years to 2030 — above the UK average of 18.5%.
Rental growth is expected to continue due to increasing tenant demand of quality properties and lack of long term supply due to planning restrictions of high rise buildings and a growing population.

Discuss Derby investment property with one of the team

Is Derby a good place to invest in property in 2026?
Derby contributes over £15bn in economic output and is home to over 276,000 people. Savills forecasts 19.0% house price growth across the East Midlands over the five years to 2030 — above the UK average of 18.5%.

How affordable is property in Derby?
At an average of £205,000, property in Derby sits well below both the East Midlands average of £242,000 and the UK average of £270,000 — leaving significant room for capital growth as the city’s regeneration pipeline matures.

What regeneration is happening in Derby?
Live schemes include Becketwell (a new performance venue plus residential quarter generating over 2,000 jobs), the Derbion Masterplan (over 1,100 new homes across Eagle Quarter and Bradshaw Way), Infinity Park (targeting 3,000 high-value jobs) and the Nightingale Quarter (a £150m scheme delivering around 800 new homes).

What are Derby’s major employers?
Over 300 employers span Engineering, Aerospace and Nuclear, including Rolls-Royce, Alstom (which builds and maintains trains at its historic Litchurch Lane Works) and JCB. Alstom recently secured a £370m contract building new trains for the Elizabeth line, securing thousands of skilled manufacturing jobs in the city.

How well connected is Derby for investors and tenants?
Derby is well connected via the M1 and M42 motorways, with regular rail services to London, Birmingham and Manchester, and East Midlands Airport just a short drive away.