Yes, the analysis of Cambridge's property market is included in our pack
The question of 'the best neighborhood to buy a property in Cambridge' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At Investropa, when we write a blog post or when we update our our property pack for the UK, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Cambridge into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Cambridge?
The real estate market in Cambridge is quite a dynamic and intriguing one.
First off, let's talk about the city's strengths that make it a magnet for property buyers. Cambridge, known globally for the prestigious University of Cambridge, is not just a hub of academic excellence but also a melting pot of history, innovation, and cultural richness.
This blend of ancient charm and cutting-edge research is rare and highly appealing. You'll find historical buildings alongside modern research facilities, creating a unique landscape that's both intellectually and aesthetically stimulating.
Now, why do people want to buy here?
The answer lies in the city's vibrant atmosphere. It's brimming with intellectual energy, thanks to the university community, and there's a constant influx of ideas and cultural activities. This makes it an ideal place for those who value a rich cultural life and intellectual stimulation.
Moreover, its proximity to London, coupled with excellent transport links, makes it a preferred choice for professionals who seek a balance between a serene academic town and the hustle of a metropolis.
Speaking of who's looking to buy, Cambridge attracts a diverse range of buyers. Academics, research professionals, and students are obvious contenders.
However, there's also a significant interest from foreign investors. Why?
Because Cambridge offers a stable investment in a globally recognized city, known for its educational and research institutions. The city's reputation as a center of learning and innovation is a strong draw for international buyers looking for a secure and prestigious investment.
To give you a sense of the market's dynamism, consider this data point: despite economic fluctuations, Cambridge's property prices have shown consistent growth over the years, outperforming many other UK regions. This resilience is a testament to the city's enduring appeal.
Now, let's delve into something unique to Cambridge properties. Many homes here, especially those in the vicinity of the university, blend historical architecture with modern living.
It's not uncommon to find properties that date back centuries, yet have been meticulously renovated to offer contemporary comfort without losing their historical essence. This seamless blend of old and new is a hallmark of Cambridge real estate.
Looking ahead, why will properties gain value here?
The continuous influx of students, academics, and professionals ensures a steady demand for housing.
Additionally, Cambridge's ongoing expansion in sectors like technology and biotech research promises economic growth and job creation, further bolstering the real estate market.
The city's commitment to preserving its historical character while embracing modernity means that properties here are not just homes, but pieces of a rich, evolving tapestry.
All these factors combine to make Cambridge real estate not just a purchase, but an investment in a lifestyle that's both intellectually and aesthetically rewarding.
Top neighborhoods in Cambridge to consider for living
Areas in Cambridge that are budget-friendly
If you're looking to buy property in Cambridge on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Average Price per sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Arbury | Lower than city average | Semi-detached, Terraced Houses | Families, Young Professionals | Community feel, Development Projects | Still developing identity |
| King's Hedges | Affordable | Mixed, Newer and Older | Students, Families, Professionals | Good for first-time buyers, Diverse population | Areas under redevelopment |
| Cherry Hinton | More affordable | Bungalows, Terraced Houses | Families, Older Residents | Village-like feel, Good schools | Far from city center |
Arbury
First, Arbury is a great option.
Known for its more affordable housing market, properties here often come in the form of semi-detached and terraced houses, which might be appealing if you're looking for a family home. The average price per square meter in Arbury is lower compared to the city's more central areas.
This neighborhood is a mix of families and young professionals, providing a vibrant community feel. The property values in Arbury could see a rise due to ongoing development projects and improvements in local amenities.
However, the area is still developing its identity, which can be seen as a weakness for some.
King's Hedges
Second, King's Hedges offers another budget-friendly choice.
The property types here vary, with a good mix of older and newer housing developments. It's particularly attractive for first-time buyers due to its more affordable average price per square meter in King's Hedges.
The area is home to a diverse population, including students, families, and working professionals. The potential for property value increase is linked to Cambridge's overall growth and the expanding tech sector.
The downside is that some parts of King's Hedges are still undergoing redevelopment, which might not appeal to everyone.
Cherry Hinton
Lastly, Cherry Hinton is a suburban area with a more peaceful, village-like feel.
It offers a variety of properties, including bungalows and terraced houses in Cherry Hinton, often at more affordable prices per square meter than the city center. The area is popular among families and older residents, known for its strong sense of community and good schools.
Property values in Cherry Hinton could rise due to its proximity to major employment hubs and the charming, family-friendly environment.
However, being further from the city center, it might not be ideal if you're looking for vibrant nightlife or quick access to Cambridge’s core.
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Areas in Cambridge that are popular and upscale
When looking to buy property in Cambridge, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price per sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Newnham | £7,500 | Period houses | Academics, Professionals | Scenic, Educational Proximity | Less Vibrant |
| Trumpington | £6,500 | Apartments, Family Homes | Young Professionals, Families | Modern Amenities | Developing Identity |
| West Cambridge | £7,000 | High-end Houses | University Staff, Professionals | Educational Facilities | Secluded |
Newnham
Newnham is a highly sought-after area in Cambridge, known for its picturesque setting and historic charm.
It's expensive, and rightfully so, due to its scenic beauty, proximity to the city center, and prestigious educational institutions. The properties in Newnham are primarily elegant, period houses with spacious gardens.
On average in Newnham, you're looking at a price of about £7,500 per sqm. The area attracts academics and professionals, thanks to its serene environment and excellent schools.
Strengths include the tranquil atmosphere and sense of community, but it's not the most vibrant or diverse area, which could be seen as a downside.
Trumpington
Trumpington, located on the city's outskirts, is a mix of modern luxury and traditional charm.
It's expensive due to its recent development surge, bringing in contemporary housing options. You'll find a mix of stylish apartments and larger family homes in Trumpington, with prices averaging around £6,500 per sqm.
The residents in Trumpington are typically young professionals and families, drawn by the new facilities and good schools. Its strengths lie in its modern amenities and accessibility.
However, it's still developing its own identity, which can be a weakness for those seeking a more established community feel.
West Cambridge
West Cambridge is an upmarket area known for its exclusivity and academic influence, thanks to the nearby university departments.
The housing is predominantly high-end in West Cambridge, with prices averaging about £7,000 per sqm. It’s populated mostly by university staff and affluent professionals.
The area's strengths are its prestigious educational facilities and green spaces.
However, it can feel a bit secluded and lacks the hustle and bustle of more central areas.
Make sure you understand the real estate market in Cambridge
Don't rush into buying the wrong property in the UK. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Cambridge that emerge as new hotspots
Let's explore these emerging neighborhoods in Cambridge that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Average Price per sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Newnham | £7,500 | Period houses | Academics, Professionals | Scenic, Educational Proximity | Less Vibrant |
| Trumpington | £6,500 | Apartments, Family Homes | Young Professionals, Families | Modern Amenities | Developing Identity |
| West Cambridge | £7,000 | High-end Houses | University Staff, Professionals | Educational Facilities | Secluded |
| Mill Road | £5,500 | Diverse Properties | Young Professionals, Artists | Cultural Diversity | Noisy, Busy |
| Chesterton | £5,800 | Varied Housing Options | Families, Professionals | Community Vibe | Developing Commercial Scene |
| Cherry Hinton | £5,000 | Mixed Properties | First-time Buyers, Families | Family-Friendly | Developing Identity |
Mill Road
Mill Road was once a more traditional, overlooked part of Cambridge but has recently transformed into a vibrant, multicultural hub.
Its popularity is rising due to its unique blend of independent shops, diverse restaurants, and cultural festivals. Prices in Mill Road are more affordable, averaging around £5,500 per sqm, offering a cheaper alternative to the city's more upscale areas.
The neighborhood is expected to continue growing in popularity, especially among young professionals and artists, drawn by its eclectic charm and community spirit.
Its strength lies in its cultural diversity and liveliness, though it can be noisy and busy, which might not appeal to everyone.
Chesterton
Chesterton, initially a quieter suburb, is becoming increasingly popular for its blend of urban convenience and village-like feel.
Its recent developments in housing and local amenities have made it an attractive spot for buyers, with prices around £5,800 per sqm. It's especially appealing to families and professionals seeking a balance between city life and a peaceful environment.
The area is predicted to keep gaining popularity, thanks to its ongoing developments and excellent connectivity.
Strengths include its community vibe and green spaces, while weaknesses might be its still-developing commercial scene.
Cherry Hinton
Cherry Hinton, a former village now part of Cambridge, is emerging as a sought-after area due to its balance of urban and rural living.
It's more affordable in Cherry Hinton, with prices around £5,000 per sqm. It's drawing in first-time buyers, families, and professionals who appreciate its local amenities and community events.
Its ongoing development and good schools make it a promising area for future growth in popularity.
Strengths include its family-friendly atmosphere and accessibility, but it's still developing its identity as part of Cambridge, which could be seen as a drawback.
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Top neighborhoods in Cambridge to invest in property
Areas in Cambridge with a strong rental demand
If you're considering buying real estate in Cambridge for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Tenant Type | Property Type | Rental Income (£/month) | Rental Yield | Pros | Cons |
|---|---|---|---|---|---|---|
| Central Cambridge | Students, Young Professionals | 1-2 Bedroom Apartments | 1,200-2,000 | 4-5% | Close to university, city center | High property prices, seasonal vacancy |
| Mill Road Area | Mixed Demographic | Victorian Terraces, Modern Apartments | 1,300-1,600 | 3.5-4.5% | Vibrant culture, independent shops | Limited parking, noise levels |
| Cherry Hinton | Families, Professionals | 3-Bedroom Houses | 1,400-1,800 | 4% | Family-friendly, affordable | Further from city center |
Central Cambridge
Central Cambridge is a prime area for rental demand due to its proximity to the University of Cambridge and the city center.
The typical tenants in Central Cambridge are university students, faculty, and young professionals, all seeking convenient access to educational institutions and workplaces. They predominantly look for one or two-bedroom apartments, which align with their lifestyle of being close to academic and social hubs.
The rental income for a one-bedroom apartment in Central Cambridge can range from £1,200 to £1,500 per month, while two-bedroom properties can fetch between £1,500 and £2,000. Expect a rental yield of around 4-5% annually. To maximize rental income, focus on properties near the university campuses or central commercial areas.
However, be mindful that property prices are high, and there’s a risk of seasonal vacancy during university holidays. The competitive market also means you’ll need to maintain high standards to attract tenants.
Mill Road Area
Mill Road Area is known for its vibrant community and diverse cultural scene, attracting a mix of students, young professionals, and families.
This area is appealing for its unique blend of independent shops and restaurants, creating a lively atmosphere. Tenants in Mill Road Area often look for properties with character, such as Victorian terraces or modern apartments.
The rental income for a two-bedroom property in Mill Road Area can be around £1,300 to £1,600 per month. The expected rental yield is about 3.5-4.5%. To increase your chances of better rental income, choose properties close to Mill Road's bustling high street.
However, potential downsides include limited parking and noise levels due to the area's popularity. Properties here are in high demand due to their balance of urban living and community feel.
Cherry Hinton
Cherry Hinton, a suburb of Cambridge, is becoming increasingly popular due to its more affordable housing options and family-friendly environment.
The area attracts families and professionals looking for quieter living while still being close to the city center. Typical properties in demand are three-bedroom houses in Cherry Hinton, with rental incomes ranging from £1,400 to £1,800 per month.
The rental yield in Cherry Hinton averages around 4%. To maximize rental returns, look for properties near good schools and amenities like parks. Cherry Hinton’s weakness lies in its distance from the city center, which might deter some potential tenants.
But its appeal to families looking for a balance between urban and suburban living makes it a strong contender in the rental market.
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Areas in Cambridge where property prices might increase in the future
In these areas in in Cambridge you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Tenant Type | Property Type | Average Price/Night (£) | Pros | Cons |
|---|---|---|---|---|---|
| Central Cambridge | Tourists, Visiting Academics | Furnished Apartments, Studio Flats | 80-150 | Proximity to landmarks, universities | Seasonal demand, rental regulations |
| Cambridge Station Area | Business Travelers, Students | Serviced Apartments | 90-130 | Transport access, business proximity | High competition, pricing challenges |
| Newmarket Road | Mixed demographic | 2-Bedroom Apartments, Small Houses | 70-110 | Affordable, near shopping/dining | Balance of affordability and quality |
Central Cambridge (Short-Term Rental)
Central Cambridge is ideal for short-term rentals due to its tourist appeal and proximity to university landmarks.
The typical short-term tenants in Central Cambridge are tourists and visiting academics who prefer furnished apartments or studio flats. They value amenities like Wi-Fi and proximity to tourist attractions.
The average price per night in Central Cambridge can range from £80 to £150. For better rental income, choose properties near key tourist spots or university buildings.
However, be aware of the seasonality of demand and potential regulations around short-term rentals. Upscale, well-maintained properties near popular sites will generally attract more guests.
Cambridge Station Area
The area around Cambridge Station is perfect for short-term rentals, catering to business travelers and short-term visiting students.
Tenants in Cambridge Station look for modern, well-connected properties, often preferring serviced apartments. Amenities like easy transport access and proximity to business hubs are highly valued.
Average nightly prices in Cambridge Station can be around £90 to £130. To maximize income, focus on properties that offer a blend of comfort and convenience.
However, competition can be stiff due to the concentration of serviced apartments, and pricing needs to be competitive to attract business travelers.
Newmarket Road
Newmarket Road, with its evolving commercial and residential scene, is becoming a hotspot for short-term stays.
It appeals to a mix of tourists, weekend visitors, and families looking for affordable accommodation options. Properties that offer a homely feel, like two-bedroom apartments or small houses, in Newmarket Road are in demand.
The average price per night in Newmarket Road can be £70 to £110. To attract more tenants, look for properties that offer easy access to shopping and dining options.
Be mindful of the balance between affordability and quality to ensure consistent occupancy rates.
Make sure you understand the real estate market in Cambridge
Don't rush into buying the wrong property in the UK. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.