Durham is a beautiful historic city in the North East of England that offers great investment potential. As the home of Durham University, one of the top universities in the UK, Durham attracts hordes of students and professionals every year looking to study, live and work here. This creates ample investment opportunities in the property market, as well as opportunities to invest in businesses catering to the large student population. With Durham’s expanding science and tech parks, there are also openings for investors to fund promising startups and inject money into the local economy. Read on to learn more about the diverse investment prospects available in Durham.
Property investment hotspots around Durham University colleges
With over 18,000 students studying across Durham University’s colleges like Grey College, Collingwood College and St Mary’s College, finding accommodation is extremely competitive in Durham. This presents lucrative prospects in the student housing market for investors to purchase and rent out properties near the university. Areas like Gilesgate and Sheraton Park are ideal for student housing investments, given their proximity to campus. Refurbishing period properties for student living is also popular. Students prioritise living close to campus, so properties within walking distance tend to have high rental demand.
Vibrant Durham city centre draws retail and leisure investors
Durham’s charming medieval city centre is home to the historic Durham Cathedral and Castle, attracting over 3 million visitors annually. This provides ample foot traffic to sustain retail, restaurants and leisure businesses in the area. AST Business Centres opened a serviced office space in Durham city centre in 2022 to cater to growing demand from enterprises. The Milburngate development is also set to bring new restaurants, shops and a cinema complex. For investors, the regeneration of Durham city centre and its popularity with tourists present opportunities to fund exciting retail, food and entertainment ventures.
Durham’s science and technology parks require startup funding
Durham City has two major science and technology parks – NETPark and DurhamGate – dedicated to innovative tech companies, providing modern office spaces and lab facilities. With Durham University’s strengths in science, engineering and digital technologies, many promising startups emerge here looking for investors. Biotech company Spark Therapeutics is one example that was spun out of research at Durham University. For investors who don’t mind higher risk, providing startup capital to emerging tech companies in Durham can bring high rewards if they succeed.
Student accommodation investments tap into rental demand
With Durham University’s rapidly expanding student intake, student accommodation is in high demand. Large purpose-built student accommodation blocks have appeared, like ‘The Gates’ near Durham University. Student housing investments involve lower costs compared to residential buy-to-lets, faster rental income with academic term contracts and lower void periods. Guaranteed rental yields of 8-10% can be achieved on student properties in Durham, making this a relatively safe investment option.
Durham’s regeneration spurs city centre property investments
Durham County Council has major regeneration plans to redevelop Durham city centre, with projects like the new Riverwalk leisure complex, Milburngate retail area and new county headquarters. With strong government backing, these urban renewal schemes promise to enhance Durham’s allure and economic prospects. For property investors, this makes Durham city centre an attractive investment location for buy-to-let residential properties and commercial real estate like office buildings.
With its picturesque location, prestigious university and ambitious growth plans, Durham presents varied investment possibilities spanning student housing, startups, retail outlets, leisure businesses and commercial real estate. Savvy investors who act early stand to gain from capital appreciation and rental yields as Durham continues its ascent as a top choice for students, visitors and professionals.