Why Compare Derby and Nottingham for Airbnb Investment?
Derby and Nottingham are two of the Midlands’ strongest markets for short-term rental investment. Both cities benefit from thriving universities, major employers, and strong transport links, making them attractive to tourists, contractors, and corporate tenants.
For investors looking at Airbnb or serviced accommodation opportunities in 2025, the question is: which city offers the better return?
Derby Airbnb Market Summary (2025)
- Average Annual Revenue: £16,000
- Average Occupancy Rate: 54%
- Average Daily Rate (ADR): £88
- Active Listings: 447
Derby offers investors a steady and reliable short-term rental market, with lower competition compared to nearby Nottingham. With fewer than 500 active listings, Derby provides room for growth—particularly in areas with high contractor demand linked to Rolls Royce, Toyota, and Bombardier.
Nottingham Airbnb Market Summary (2025)
- Average Annual Revenue: £17,000
- Average Occupancy Rate: 56%
- Average Daily Rate (ADR): £91
- Active Listings: 1,252
Nottingham edges out Derby in both average revenue and occupancy rates. With over 1,200 active listings, the city demonstrates high demand and established maturity in the short-term rental market.
However, the larger number of listings also means greater competition for investors—making property selection and location crucial.
Investment Considerations: Derby vs Nottingham
When deciding between the two, investors should weigh the following:
- Competition Levels
- Nottingham: Higher competition with 1,252 listings.
- Derby: Less saturated with 447 listings.
- Revenue Potential
- Nottingham: Slightly higher average revenue (£17,000 vs. £16,000).
- Derby: Stronger value opportunity with competitive property prices.
- Demand Drivers
- Derby: Contractors and corporate stays tied to Rolls Royce, Toyota, and large engineering employers.
- Nottingham: Student population, major hospitals, and corporate tenants from larger city-based companies.
- Regulations
- Both cities currently have lenient Airbnb laws, making them investor-friendly.
Conclusion: Which City Should Investors Choose?
- Nottingham offers slightly better returns on paper, with higher occupancy and revenue, supported by strong student and corporate demand.
- Derby, however, stands out with lower saturation, attractive property prices, and consistent demand from contractors.
For investors seeking maximum short-term Airbnb income, Nottingham may have the edge.
For those prioritising less competition, good yields, and long-term growth potential, Derby remains a highly attractive option.
Sources: Airbtics, Airroi, Search Logistics
Want to discuss short-term investment opportunities in Derby or Nottingham? Drop me an email on will@thedaviscollective.co.uk.
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