Top Investment Areas

When considering where to invest in Cambridge, it’s important to factor in property type, as different areas offer a range of options from terraced housing and studio apartments to larger family homes, each influencing rental demand and investment returns.

Central – Prestigious but very expensive, around £700k+ on average. Top Options: Newnham, Petersfield. Central Cambridge is highly desirable due to its vibrant culture, proximity to the main college buildings, and excellent access to green spaces like Jesus Green. The River Cam runs through this area, offering scenic views and recreational activities. Mill Road, a sought-after area within central Cambridge, is known for its vibrant atmosphere, independent shops, diverse eateries, and lively social scene, making it especially appealing to young professionals, students, and families.

North – More affordable prices around £400-500k. Areas like Arbury, King’s Hedges (an emerging area and emerging neighbourhood), and Bar Hill offer solid rental yields. The north also features large villages with a rural feel, combining peaceful countryside charm with convenient access to urban amenities—an attractive option for investors seeking balance.

South – Family-friendly suburbs like Trumpington and Great Shelford. Prices around £500-600k. Trumpington is considered one of the promising areas for future investment due to ongoing development and strong demand.

East – Areas like Fen Ditton and Abbey provide good rental stock for students/professionals. Abbey, in particular, is known for its strong community spirit, with local events and markets fostering a close-knit neighbourhood atmosphere.

West – Desirable villages like Hardwick and Coton cost £600k+ for houses. These villages are also recognised for their strong community spirit, making them appealing to families and long-term residents.

Overall, these areas represent an attractive option for property investors due to their mix of established and emerging neighbourhoods, diverse property types, and strong growth potential.

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Property Types

Cambridge offers a diverse selection of property types to suit a wide range of investment strategies. In the city centre, investors will find modern apartments and stylish conversions, often commanding premium prices due to their prime location and proximity to local amenities. For those seeking period charm, elegant Victorian and Edwardian townhouses are a popular choice, while new developments provide contemporary living with the latest features. Energy-efficient homes are gaining traction among many investors, reflecting the growing demand for sustainable and eco-friendly properties. The average price of properties varies by area, with the city centre remaining the most sought-after and expensive. For more affordable options, the northern suburbs such as King’s Hedges and Cherry Hinton offer excellent value, making them attractive for investors looking to maximise returns without compromising on location or potential.

Cambridge University Student Accommodation

The University of Cambridge is one of the world’s most prestigious institutions, attracting top students globally. With around 24,000 students across 31 colleges, housing demands are incredibly high.

Student Accommodation

– First-year students are guaranteed housing in college dormitories/hostels

– After that, about 30% of students remain in college properties

– The rest live in private rental housing around the city

– High rental demand keeps student housing costs elevated

– There is consistently high demand for rental properties among students, making Cambridge a strong market for real estate investors.

Dormitory Demands

– Cambridge has around 6,000 university-owned student rooms

– These are oversubscribed annually, with wait lists common

– Amenities like food halls and gyms are included

– Rent averages £120-200 per week for a single room

– A property’s location and amenities can significantly influence a property’s rental value and demand among students.

Cost of Living

– Overall living costs are estimated at £12,000-15,000 annually

– This includes £8,000-10,000 for accommodation

– Food, transportation, and other expenses are also high

Student Population

– Around 12,000 undergraduates

– 12,000 postgraduates across all disciplines

– 30% are international students from over 120 countries

Each summer, Cambridge hosts numerous short-term language schools catering to international students looking to improve their English skills. These intensive programs attract thousands of teenagers and adults worldwide for 2-8 weeks.

With its stellar reputation and facilities, Cambridge will continue attracting students globally. This ensures sustained rental housing demands and potential investment opportunities in the student housing sector surrounding the historic university town

Off-plan property investment opportunities.

Price Advantage: Off-plan properties are usually sold at lower pre-construction prices than already-built homes in the same area. Buyers can lock in lower rates before prices rise upon completion.

Added Value: Buyers get a newly built property with no renovations needed. Everything is brand new and built to modern standards/specifications.

Choice Selections: Buying off-plan offers the exclusive opportunity to have the first pick of your desired unit, floor plan, view, etc., before the public sales launch, making you feel privileged.

Payment Plan: Off-plan often allows phased payment plans instead of total upfront costs, making financing more manageable.

Potential Appreciation: Properties can increase in value between purchase and completion if the local market rises.

Rental Potential: New builds appeal to tenants, making attracting and retaining quality long-term renters easier.

By securing properties early in the development cycle at pre-construction pricing, off-plan buyers can maximise their returns on investment upon the project’s final delivery.

Major Development Projects in the Cambridge area

To tackle the supply shortage, numerous significant housing development projects are either in progress or being planned:

Eddington (Northwest Cambridge) – 3,000 new homes, community facilities, and a primary school on former green belt land owned by the University of Cambridge. The first phases are already complete. The area’s close ties to world-leading medical research at the University of Cambridge have further boosted local demand, attracting professionals and academics alike.

Darwin Green – 1,593 homes, schools, and community spaces across four “urban villages”. Under construction by developers BioMed Realty and Wrenbridge Land Ltd. Its proximity to major medical research institutions enhances its appeal for those working in healthcare and innovation sectors.

Marleigh (Northeast Cambridge)—Up to 4,000 new homes are planned for this former airport site over the next 20 years. The first phase was recently approved.

Waterbeach New Town – Plans for over 11,000 new homes on a former military site just north of Cambridge. One of the UK’s most significant upcoming projects.

**Northstowe—**A new town under construction, up to 10,000 homes are planned for about 9 miles northwest of Cambridge by 2037.

These projects aim to dramatically increase housing stock levels in the Cambridge region over the next 1-2 decades to meet skyrocketing demand from residents, professionals, and university affiliates.

We unlock the exclusive world of Cambridge real estate for discerning foreign investors. Our unparalleled local expertise and insider connections grant you access to prestigious off-market opportunities meticulously selected to exceed your expectations.

From illustrious addresses in elite enclaves to high-yield rentals in thriving locales, we tailor bespoke solutions aligned with your investment vision.

Elevate your portfolio through our commitment to excellence and gain a distinguished ownership experience in one of the world’s most coveted real estate markets. With ongoing development, strong demand, and a consistent upward trajectory in property values, Cambridge remains a prime destination for investment property. Invest with confidence – Cambridge’s finest awaits.