Known as a cultural and educational hotspot, Cambridge has an exceptionally high standard of living and a growing economy, which is bringing more people to the city and making it a top property investment location for international investors.
Located in eastern England, Cambridge is famous across the world for its university. In all of England, it also has one of the highest concentrations of preserved historic buildings, and the majority of architectural splendour and tradition found in the city is centred around the University of Cambridge.
The historic university dates back to 1209 and remains one of the best universities in the entire world. It is home to 31 impressive colleges with some of the top ones being King’s, Trinity and St John’s.
Despite featuring mediaeval character, Cambridge is still a modern town with top-notch cultural attractions. The Fitzwilliam Museum is not only a masterpiece of architecture but also houses a collection of English pottery and china, in addition to other antiquities.
Cambridge is also an important market town, and Market Hill still serves as the city’s busy marketplace. Additionally, the city has a thriving food and drink scene. Some of the top spots include the gastropub Pint Shop, the brunch spot Fitzbillies and the Michelen-starred restaurant Midsummer House.
Quality of life is very high in Cambridge. There are loads of green spaces, and the city is great for cycling. Parker’s Piece is a 25-acre park that’s known as the birthplace of modern football, and Christ’s Pieces is from the Victorian Era and features ornamental trees and flowerbeds.
The Cambridge University Botanic Garden also provides 40 acres of impressive gardens with over 8,000 plant species. And scenic countryside is right on the city’s doorstep as well. Cambridge is also known for its punting as the River Cam runs through the city’s heart and provides fantastic views.
While Cambridge is located about 55 miles north-east of London, it still boasts close transport links to the capital. The quickest direct train route takes 50 minutes to reach London Kings Cross.
Further investment is being made to transport in Cambridge. The train station is undergoing a massive redevelopment, which will further transform itself into a top commuter area for London. Additionally, the government is investing in the new East West Rail line, which will better connect Cambridge and Oxford.
With the rise in remote and hybrid working during the COVID-19 pandemic, this will likely only further make Cambridge attractive for professionals who don’t have to be in the capital every working day. As direct train journeys take less than an hour from Cambridge to Central London, it’s easy to commute to the capital from this part of the East of England.
Even though Cambridge is a small city, it features a booming economy, employment opportunities in a range of sectors and excellent schools. And in recent years, Cambridge’s economy and employment growth has been strong.
With a world-class reputation for its education, science and innovation and research and knowledge-based industries, Cambridge is crucial to the UK’s economy, international competitiveness and a major area for employment. There has been especially impressive growth in the tech and science industries, which is continuing to bring more professionals to the city.
Large companies have offices in the city, including Deloitte, Amazon and Arm. The Cambridge Biomedical Campus is also one of the world’s largest biomedical research centres and is the headquarters for AstraZeneca.
About 150,000 people live in Cambridge, as the city has seen steady population growth in recent decades. The city is located within the CB postcode area and had an average property price of £561,560 last year, according to figures from Rightmove.
For some time, housing demand in Cambridge has been outweighing supply, which has pushed up house prices. A growing number of people want to live here, and that’s pushing demand up more and more. There is even a growing population of Londoners moving to Cambridge for its liveability.
There are a variety of housing options on offer in Cambridge. In the centre of the city, the majority of homes are Edwardian or Victorian terraces. Near the university colleges, there are bigger Arts and Crafts-style homes.
While the city is known for its historic architecture, there are a number of contemporary additions to the property market as well. As demand has soared in recent years, new-build developments are being brought forward with further urban growth expected in more neighbourhoods.
Cambridge was named the third-best UK city for buy-to-let investment on Aldermore’s 2021 Buy to Let City Tracker. The city has some of the highest housing demand in the UK, paired with impressive house price growth.
Cambridge has given investors an annual return of 4.9% through house price growth alone, in addition to an average rental yield of 3.1%. With soaring demand and more people moving to the city, Cambridge is expected to see further house price increase in the years to come.
Additionally, only 0.7% of Cambridge’s housing stock was left vacant on average last year. There’s also a high proportion of residents who rent privately here with 29% of the population renting.
This data shows why Cambridge is an ideal location for property investment with strong rental demand and the potential to earn lucrative returns over the long term. As an attractive location for domestic and international investors and the global prestige that comes with the city, Cambridge will likely remain a top choice for long-term property investment.