The 6 best cities for real estate investment in the UK

Various cities in the United Kingdom are witnessing an active movement of investors interested in the real estate sector, as millions of people around the world compete to find good investment opportunities because of the many advantages it provides, the most important of which are: world-class infrastructure, health care and education system represented by the finest institutions and universities in the world and many centers of culture and art.

In this article, we present to you the six best cities in the United Kingdom that bear an expected future for those interested in the best real estate opportunities for investment, as they were chosen according to several criteria, the most important of which are: the average price of real estate in them, the percentage of financial return from investment, and the job and investment opportunities that these cities provide.

  1. London

    London has always been a popular choice among real estate investors. During the past two decades, the real estate market in London has witnessed remarkable growth along with a high rate of financial return from rent.

    In addition to being one of the most important financial centers in the world, London is one of the best tourist destinations attracting about 30 million tourists annually, and on the other hand, its population is so fast-growing that those who choose to work and live in London can expect to enjoy a lot of business opportunities and high-standard educational institutions that attract countless local and international students.

    The average house price in London is currently £553,000. Real estate price forecasts indicate that the capital market is active and diversified across different boroughs. Prices for central apartments and homes are expected to rise by at least 8% over the course of 2022. The average rental yield in London is currently 4.1%.

  2. Birmingham

    Birmingham is the second largest city in the United Kingdom, and the first industrial city in the world, and so far it is witnessing increasing urban and industrial progress, and it is considered one of the best cities in the United Kingdom in terms of the standard of living and the services it provides.

    The average house price reached 206,500 sterling pounds in January 2021, The rate of financial return on investment exceeded 6%, and with the establishment of more projects within the city’s large plan for development, Birmingham is expected to be one of the fastest-growing areas during the next five years.

    According to expectations, It will witness an increase in the city’s population to more than 1.24 million by 2030, 40% of them are young people, as Birmingham is the third city in the United Kingdom that attracts university graduates under the age of 25, who form an important group looking for affordable rental properties.

    Therefore, They are an important opportunity for investors looking to achieve a financial return from The real estate market, as the city is an important center that embraces more than 100,000 workers working in various investment sectors that provide many job opportunities, as the strong infrastructure of the city and Birmingham Airport helped attract them, and a network of world-class transport links linking various cities in the Kingdom.

  3. Derby

    If you are wondering which city will fulfill your ambitions to invest in real estate in the United Kingdom in 2023, then Derby holds the answer for you. This city, located in the center of the United Kingdom, is currently undergoing a development project entitled “Derby 2030” that will change the local landscape.

    The city is connected to more than 17 surrounding universities that can be reached within an hour, making Derby a base for more than 34,000 university students. According to statistics, 46% of UK university graduates move to Derby to work in it. Derby is the sixth most productive city in the UK and many large companies such as Rolls-Royce and Toyota and other institutions contribute to creating more Of the 45,000 jobs in the local economy.

    Also, Around 48% of Derby’s population is under the age of 35, this younger demographic, which contributes to many people seeking real estate investment opportunities, is the key factor driving the success of Derby’s property market and cementing it as one of the best places to go. To invest in real estate in the United Kingdom in 2022, where the average price of a property is 180,000 sterling pounds, with a financial return on investment of 6%.

  4. Leeds

    Leeds is one of the most important cities in northern England and a unique place for investment, especially with a relatively acceptable average price of 172,000 sterling pounds and a financial return of 5.27%. Known as a major city for investors seeking financial return and income in the best places to invest in real estate in the UK in 2022.

    Economically, Leeds is one of the fastest growing cities in the country and now competes with many European cities, this has a significant impact on opportunities Available within the city, as Leeds has the second largest banking and financial sector in the United Kingdom, with a population of about 800,000 people.

    Studies indicate that 73% of the city’s population are families looking for real estate opportunities to settle and live in the city, in addition to the presence of more than 65,000 university students, making the city a top destination for investors looking for opportunities to achieve stable, long-term financial returns.

  5. Manchester

    It is the second most important and largest city in the United Kingdom, located in the northwestern part of England. The city came before London in a poll conducted by a site specialized in monitoring the best places for tourism, housing, and investment.

    One of the most important reasons for choosing it is the University of Manchester, which ranks 27 among the best universities in the world, where the city includes more than 100,000 university students, which made it an important attraction for those looking for opportunities for work and stability, as it witnessed economic growth of 84% since 2002 until this moment.

    The city was also recognized as a prime location for startups along with the city of Birmingham, with many job opportunities in multimillion-dollar organizations such as Spinningfields and MediaCityUK, as well as the Great North Rail project, which comes into force this year, and will allow more than 40,000 people to travel and move around the major cities, lead to an increase in the proportion of tourism and ease of movement for those wishing to reach the city.

    The real estate market in Manchester has witnessed remarkable progress since 2019, as more than 7,000 apartments were built, with an average house price of £208,792 in 2022, and a financial return of 6.53%.

  6. Sheffield

    Due to its future potential, the city of Sheffield is a strong competitor to other cities for investors looking for the best investment destination. Continual efforts to develop Sheffield into a major city have paid off, with about 480 million pounds sterling spent on developing the market sector, demonstrating a commitment to meeting the needs of residents.

    The project contributes to the establishment of new public spaces, cultural and recreational places, and points that provide a suitable place for living and stability, as the average real estate price reached 192,362 pounds, with a financial return of 4.45%. Sheffield has an excellent infrastructure to start building projects on.

    Also, It is home to two universities that host more than 63,000 students, and there are expectations that the city will be able to create more than 70,000 new jobs over the next decade thanks to the establishment of an advanced industrial complex that will make a quantum leap in the city’s real estate market.

If you are interested in real estate investment in Cyprus, Greece, Spain, or the United Kingdom, contact us by clicking on the link here.

Reach Real Estate Company was established in 2023, to become a leader in providing consultations to those interested in finding the best investment opportunities, helping investors wishing to obtain European residency through real estate investment, and guiding those looking for a new lifestyle.


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