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Yes, the analysis of Cambridge's property market is included in our pack
Thinking about buying a 3-bedroom apartment in the Mill Road area of Cambridge? It’s a vibrant neighborhood, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other areas like Newnham or Chesterton where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Cambridge Property Pack.
Will property prices increase in Cambridge in 2025?
Yes, property prices in Cambridge are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Cambridge remains one of the most attractive cities in the UK for both domestic and international investors.
Sure, there are some economic challenges like inflation and rising interest rates, but the main drivers behind Cambridge’s price growth remain strong.
Demand, especially in the central areas and near the university, continues to outstrip supply, making any major price dips unlikely. Additionally, Cambridge's reputation as a leading academic and tech hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Cambridge
Here are some factors suggesting prices could increase:
The ongoing expansion of the Cambridge Biomedical Campus and other tech hubs is expected to attract more professionals to the area, increasing demand for housing and pushing up property prices.
Cambridge's limited land availability for new housing developments means that supply will remain constrained, which is likely to drive up prices as demand continues to grow.
The city's strong educational institutions, including the University of Cambridge, continue to attract students and academics from around the world, maintaining a steady demand for rental and purchase properties.
Infrastructure improvements, such as the planned East West Rail project, are expected to enhance connectivity to and from Cambridge, making it an even more attractive location for commuters and boosting property values.
The trend of remote working is encouraging more people to move to cities like Cambridge, which offer a high quality of life and good connectivity, further increasing demand for housing.
Cambridge's reputation as a leading center for innovation and research continues to attract investment, which in turn supports the local economy and housing market.
Government initiatives aimed at supporting the housing market, such as help-to-buy schemes, are expected to continue, making it easier for first-time buyers to enter the market and sustain demand.
Signals pointing to a property price decrease in Cambridge
Here are some factors suggesting prices could fall:
Rising interest rates could make mortgages more expensive, potentially reducing the number of buyers able to afford property in Cambridge.
Economic uncertainty, both domestically and globally, could impact buyer confidence and slow down the housing market.
Inflation and increased living costs may strain household budgets, reducing the purchasing power of potential buyers and impacting demand.
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If property prices go up in Cambridge, how much would they increase by?
If real estate prices in Cambridge were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic, academic-driven markets like Cambridge appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, demand, and property type.
It means that, if you spot a charming 2-bedroom Victorian terrace in the city center for £500,000 today, don't be surprised if it's priced between £515,000 and £535,000 this time next year.
To give you a better understanding, here is a table that shows 7 types of Cambridge real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (£) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Victorian Terrace (60 sqm / 646 sqft) | £500,000 | £515,000 | £525,000 | £535,000 |
| Modern Apartment (75 sqm / 807 sqft) | £650,000 | £669,500 | £682,500 | £695,500 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | £1,200,000 | £1,236,000 | £1,260,000 | £1,284,000 |
| Studio (30 sqm / 323 sqft) | £300,000 | £309,000 | £315,000 | £321,000 |
| Loft (80 sqm / 861 sqft) | £800,000 | £824,000 | £840,000 | £856,000 |
| Townhouse (150 sqm / 1,615 sqft) | £1,500,000 | £1,545,000 | £1,575,000 | £1,605,000 |
| Investment Property (50 sqm / 538 sqft) | £400,000 | £412,000 | £420,000 | £428,000 |
Everything you need to know is included in our Property Pack for Cambridge
If real estate prices go up in Cambridge, which areas are likely to see the biggest increases?
Today, people who want to move to Cambridge are looking for the historic charm combined with modern conveniences and vibrant social scenes, which Mill Road delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Chesterton has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Cambridge market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Mill Road | High | Recent development of boutique shops and cafes, along with its increasing appeal to young professionals and students, driving demand. |
| Newnham | High | Expected rise due to limited housing stock, proximity to the University of Cambridge, and growing demand for prime properties in central Cambridge. |
| Chesterton | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Trumpington | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Eddington | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Castle Hill | Medium | Investment in local infrastructure, such as the extension of cycle paths and renovation of historic areas, is boosting long-term value. |
| Petersfield | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Romsey | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Cherry Hinton | Medium-High | Its proximity to Cambridge, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Arbury | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Grantchester | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Cambridge City Centre | High | Upcoming restoration of historic colleges and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Cambridge
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Cambridge?
In 2025, Cambridge real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by the city's strong academic and tech sectors, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Cambridge, such as Cherry Hinton and Trumpington, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In a historic city like Cambridge, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Cambridge's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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