Location is key: Why Cambridgeshire-Peterborough?

A Prime Property Investment Opportunity.

Cambridgeshire has emerged as a highly attractive location for property investment, offering a combination of economic resilience, growing infrastructure, strong rental demand, and long-term capital appreciation. With its world-renowned higher education facilities, thriving tech & industrial sector, and excellent connectivity, the region presents a compelling opportunity for investors looking to maximize returns in the UK property market.

Economic and Employment Growth

Cambridgeshire, particularly Cambridge, is a global hub for research, innovation, and technology. The presence of world-class institutions such as the University of Cambridge has fostered a thriving knowledge-based economy. The area is home to the “Silicon Fen,” a cluster of tech and biotech companies and numerous start-ups, making it a magnet for skilled professionals and investors alike.

The region has experienced significant economic growth over the past decade, with an increasing number of global companies choosing to establish operations here.

Key employers in the region include:

• AstraZeneca – A leading pharmaceutical company with a major research and development center in Cambridge.

  
  

• ARM Holdings – A globally recognized semiconductor and software design company.

  
  

• Marshall Group – A major aerospace and engineering firm headquartered in Cambridge.

  
  

• Amazon and IKEA (Peterborough) – Major employers in logistics and retail, benefiting from Peterborough’s strategic location.

  
  

• Cambridge Biomedical Campus – Europe’s largest center of medical research and patient care, housing institutions like the NHS, the University of Cambridge, and multiple biotech firms.

Cambridge and Peterborough are both part of the Fast Growth Cities network, a designation that highlights their rapid economic expansion and strong contribution to the UK economy. This initiative, supported by Centre for Cities, identifies medium-sized cities that are outperforming larger metropolitan areas in key economic indicators such as employment growth, productivity, and business investment.

Being part of the Fast Growth Cities means that Cambridge and Peterborough benefit from increased government attention for infrastructure investment, business incentives, and housing development to support their rapid expansion. The designation underscores their potential for sustained economic growth, making them attractive locations for property investors seeking high returns and capital appreciation.

Expected Employment Growth

• A 15% increase in overall employment across the region by 2035, outpacing the national average.

  
  

• The life sciences and biotech sector is expected to grow by 25% over the next decade, reinforcing Cambridge’s status as a global hub for innovation.

  
  

• The technology sector, including artificial intelligence and cybersecurity, is forecast to expand by 20%, creating thousands of high-skilled jobs.

  
  

• Manufacturing and advanced engineering, particularly in Peterborough and Huntingdon, are projected to experience an 18% increase in employment due to new investments and infrastructure improvements.

  
  

• The logistics and e-commerce sector, supported by Peterborough’s strategic location, is expected to see job growth of 12%, driven by the expansion of companies such as Amazon and IKEA.

These employment trends are set to attract more professionals to the area, further driving demand for housing and rental properties, making Cambridgeshire an excellent long-term investment destination.

Population Growth and Demographics

Cambridgeshire has experienced significant population growth in recent years, driven by its strong economy, excellent education institutions, and high quality of life.

• The population of Cambridgeshire is currently estimated at around 860,000 people, with Cambridge being home to approximately 150,000 residents & Peterborough to approximately 215,000.

  
  

• Over the past decade, the region’s population has grown by over 10%, significantly outpacing the UK national average of 6.6%.

  
  

• By 2040, the population is expected to exceed 1 million, marking a projected growth of approximately 16%.

  
  

• The fastest-growing demographic is young professionals and skilled workers in the tech and biotech industries, further fuelling demand for housing.

  
  

The rapid population growth, combined with limited housing supply, has contributed to rising property prices and strong rental demand, making Cambridgeshire an attractive location for property investors.

Healthcare Facilities

Cambridgeshire boasts excellent healthcare facilities, making it an attractive location for families and professionals seeking high-quality medical services. Key hospitals include:

• Addenbrooke’s Hospital (Cambridge) – One of the UK’s leading hospitals, renowned for its research, specialist care, and teaching. It is part of the Cambridge Biomedical Campus and plays a crucial role in medical innovation. It employs approximately 11,000 staff members.

  
  

• Royal Papworth Hospital – A world-class heart and lung hospital, known for pioneering treatments in cardiothoracic medicine. The hospital employs around 1,800 staff members.

  
  

• Hinchingbrooke Hospital (Huntingdon) – A general hospital offering a wide range of medical services, serving Huntingdon and the surrounding areas. It has a workforce of approximately 2,000 staff members.

  
  

• Peterborough City Hospital – A modern facility providing comprehensive healthcare services to Peterborough and North Cambridgeshire. It employs around 5,700 staff members.

  
  

On top of being a large employer in the region, with a multitude of working professionals, the presence of these top-tier medical institutions enhances Cambridgeshire’s appeal as a desirable place to live and invest, further reinforcing strong property demand.

Higher Education and Universities

Cambridgeshire is home to world-class higher education institutions, attracting tens of thousands of students annually. The presence of these universities significantly contributes to rental demand and economic growth.

• University of Cambridge – Ranked among the top universities globally, Cambridge has a student population of approximately 24,500. It plays a critical role in the region’s innovation and economic development.

  
  

• Anglia Ruskin University (Cambridge and Peterborough Campus) – With over 12,500 students across this 2 campuses, Anglia Ruskin is a key player in higher education, particularly in fields like business, health, and technology. Current ARU campus in Peterborough counts approximately 2,500 students, with ongoing investment and expansion projects forecasting a growth to 12,500 by 2035.

With a combined student population exceeding 35,000, this drives a high demand for student accommodation whilst contributing to the thriving rental market in Cambridge and Peterborough.

Government and Development Initiatives

Significant investment in housing, transport, and business infrastructure continues to bolster Cambridgeshire’s property market. The government has earmarked the region for development, ensuring continued growth and long-term sustainability for investors.

Major government-backed regeneration projects include:

• The Cambridge-Oxford Arc – A £5 billion project aimed at enhancing infrastructure, business growth, and housing development across the region.

  
  

• Cambridge South Station – A £183 million investment to support the growing biomedical sector and improve regional connectivity.

• Peterborough Regeneration Scheme – Over £600 million invested in town center redevelopment, housing, and commercial infrastructure to support economic growth.

  
  

• A14 Improvement Scheme – A £1.5 billion government-funded upgrade to ease congestion and improve transport links.

  
  

• Ely Rail Capacity Enhancement – A multimillion-pound investment to improve train services, benefiting commuters and boosting regional property values.

  
  

• Northstowe Development – A planned new town project near Cambridge, expected to provide 10,000 new homes, commercial space, and essential infrastructure.

Conclusion

Conclusion: Cambridgeshire – A Prime Property Investment

Cambridgeshire offers a compelling investment opportunity, driven by economic strength, employment growth, and infrastructure development. Home to to top tier universities, hospitals and major corporations, the region attracts skilled professionals, ensuring sustained housing demand and strong rental yields.

With employment growth outpacing the national average and a thriving student population, the rental market remains robust.

Infrastructure projects such as the East West Rail and Cambridge South Station enhance connectivity, while government-backed initiatives like the Cambridge-Oxford Arc fuel long-term development.

Property values in Cambridge consistently rank among the UK’s top-performing, with emerging hotspots like Peterborough, St Neots, and Ely offering strong growth potential. Including all projects given planning in 2024 (8,822 houses), plus other large schemes that are in progress/planned (some already counting into those permissions), we’re likely looking at 30,000+ new homes across Cambridgeshire & Peterborough in the pipeline (approved + proposed) for coming years. This concludes an immense projected confidence of growth in the region.

For investors seeking high rental yields and long-term capital appreciation, Cambridgeshire presents itself as a prime opportunity in the UK property market.