INVESTING IN OXFORD PROPERTY

• Home to #1 University in the World (World University Rankings 2024)

• Sees 9 Million Visitors Per Year

• Features Multiple UNESCO World Heritage Sites

Receive the latest insights on Oxford's real estate market by downloading the investment case below.

OXFORD: AN ICONIC EDUCATIONAL CITY

Oxford is most renowned for its top-ranking university, which repeatedly attracts foreign capital and international students. This significant cultural hub in the UK boasts internationally acclaimed art galleries, libraries, UNESCO World Heritage Sites, and museums such as the Ashmolean Museum-the oldest university museum in the UK. The prestigious educational institution also bolsters a robust local economy, fostering cutting-edge research across various industries and drawing top talent globally.

Property in Oxford presents a promising prospect, benefitting from the city's enduring appeal and demand from professionals, students and tourists alike.

Additionally, Oxford serves as a popular filming location, including for the Harry Potter series, and features major cultural spots like the New Theatre Oxford, established in 1836 with its large Art Deco auditorium. Annually, the city attracts approximately 9 million visitors who engage in a variety of festivals and events, energized by its substantial and vibrant student community.

Economically, intellectual property in Oxford has demonstrated significant growth, with a 9.7% increase in house prices in 2022 and a 68% rise over the past decade. Future forecasts suggest that house prices may rise by another 26% over the next decade, exceeding the UK average. Due to limited housing availability and high prices, many have turned to renting, creating a strong rental market. From 2012 to 2019, Oxford's rental prices rose by an average of 3.1% per year, outpacing the national average of 2.1%.

Oxford Property Investment in a snapshot

Population

One-third of Oxford's population is born outside the UK. From 136,600 residents in 2000, the population grew to 152,900 by 2022 and is expected to reach 158,130 by 2035, marking a 16% increase since 2000, largely due to its educational appeal.

Economy

Oxfordshire's disposable household incomes have increased from GBP38,260 in 2000 to GBP67,840 in 2022, a 77% rise, outpacing the UK average. Incomes are projected to grow another 53%, reaching GBP104,030 by 2035. This growth is driven by the region's low unemployment and expanding economy. By 2035, households in the lowest income bracket are expected to decrease by 78% from 2010 levels to under 19,000, while those in the upper-income band are set to increase by 387%, totalling 142,500 households.

Housing Market

Forecasts suggest that from 2022 to 2032, house prices on Oxford property for sale will increase by an additional 26%, exceeding the anticipated UK average growth of 21% in the same period. While Oxford may not be the most affordable market, it is
well-positioned for long-term capital appreciation.

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FOUR REASONS TO MAKE A PROPERTY INVESTMENT IN OXFORD

Oxford, renowned for its prestigious university and rich cultural heritage, presents a compelling case for property investment. The city not only stands as an educational and research hub but also as a burgeoning market for real estate investment. With its robust projected growth in property values, a strong rental market, and economic resilience, Oxford offers investors unique opportunities. Here, we explore four key reasons why investing in Oxford's intellectual property market is a strategic move for those looking to capitalize on long-term growth and stability.

Exceptional Property Value Growth

Oxford's housing market is projected to experience significant growth, with property prices forecasted to increase by 26% over the next decade, from 2022 to 2032. This rate surpasses the UK's expected average growth of 21% for the same period. Oxford's strong performance in property valuation highlights its robust investment potential.

Robust Rental Market

Oxford's rental market is exceptionally strong, reflecting its limited housing supply and high property costs. Between 2012 and 2019, Oxford's property rental prices grew by an average of 3.1% annually, compared to a national average of 2.1%. This trend suggests a consistently high demand for rental properties, making it an appealing market for buy-to-let investors.

Economic Stability and Growth

Oxford is an economic powerhouse with a low unemployment rate of 3.3% in 2022, below the national average of 4.4%. The city's gross value added (GVA) has increased significantly, with predictions of further economic expansion by 18% up to 2035. It's world-leading educational institutions, like the University of Oxford, contribute GBP15.7 billion to the UK economy, supporting over 28,000 jobs and highlighting the city's role as a critical hub for economic and educational activities.

Cultural and Educational Appeal

Oxford attracts about 9 million visitors annually due to its historical and cultural significance, including being a filming location for the Harry Potter series. Its educational sector is bolstered by approximately 43,000 full-time students, enhancing its vibrant community atmosphere. These factors not only contribute to a dynamic local economy but also create a continuous demand for housing, benefiting intellectual property investors in Oxford looking for a location with both historical charm and modern amenities.

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Which Area of Oxford Should I Invest?

Investment properties for sale in Oxford offer attractive opportunities due to the city's strong rental demand and historical appreciation in property values. As a prestigious university city, Oxford attracts students, professionals, and academics, ensuring a steady rental market. Properties near the university, hospitals, and tech hubs are particularly sought after. Investors can choose from a range of options, including traditional terraced houses, modern apartments, and student accommodations. Oxford's rich cultural heritage and growing economy further enhance the potential for capital growth. Whether seeking long-term rental income or capital appreciation, Oxford remains a prime location for property investment.

Over the past year, the average property price in Oxford was GBP470,000, representing a 10% rise from June 2023. The average monthly rent has increased by 5%.

Oxford Property Investment Areas

It is important to know about the different areas in Oxford before investing in property. Oxford City Centre offers high rental demand and strong capital growth due to its proximity to the university. Jericho is trendy and desirable, attracting professionals and students. Summertown is affluent, with excellent schools and amenities. Botley provides more affordable options with great transport links, appealing to families and commuters.

Oxford City Centre

Investing in Oxford City Centre is a smart choice due to its strong rental demand, driven by a large student population, professionals, and academics. The area offers excellent transport links, rich cultural amenities, and proximity to the prestigious University of Oxford, ensuring consistent tenant interest. Properties here often appreciate well, benefiting from the city's robust economy and limited housing supply that is often snapped up by students.

As of 2024, the average house price in Oxford City Centre is around GBP750,000, reflecting its high desirability and potential for long-term capital growth. This combination of steady rental income and property appreciation makes it a prime investment location.

Botley

Located just west of Oxford, Botley provides more affordable property options compared to the city centre, appealing to investors, families and commuters seeking value for money. The area boasts good transport links, including a train station and bus routes, ensuring easy access to Oxford and surrounding areas. With a range of local amenities, including shops, schools, and parks, Botley meets the needs of diverse tenants. Its growing popularity and ongoing development projects suggest strong potential for property value appreciation, offering both stable rental income and long-term investment growth. The average price of property in Botley is GBP550,000.

Jericho

Jericho is a prime location for property investment due to its vibrant community, charming character, and proximity to Oxford City Centre. Known for its picturesque streets, independent shops, and trendy cafés, Jericho attracts a mix of students, professionals, and academics, ensuring a robust rental market. The area's historic appeal and limited housing supply contribute to steady property value growth. Its proximity to the University of Oxford and excellent schools further enhance its desirability. The average price of property in the area is around GBP1,000,000.

Summertown

Investing in property in Summertown offers a range of benefits due to its prestigious reputation and high demand. This affluent area north of Oxford City Centre is renowned for its excellent schools, making it highly attractive to families and professionals. Summertown's charming character, with its mix of modern and period homes, along with a vibrant high street featuring boutique shops, cafés, and restaurants, enhances its appeal. The average price for properties is around GBP850,000.

Oxford Off-Plan Property

Investing in off-plan property in Oxford can be a lucrative opportunity due to several key factors. Off-plan properties, purchased before construction is completed, often come with lower initial prices and potential for significant capital appreciation by the time they are finished.

Investing early can offer customisation options, adding personal value and appeal. Additionally, off-plan investments in Oxford benefit from the city's ongoing regeneration projects and infrastructure improvements, which enhance property values. With high rental demand from students, academics, and professionals, off-plan properties can provide promising rental yields.

Oxford property has seen a steady increase in value over the last three years and the trend is set to continue.

Our Track Record For Oxford Property Investment

IP Global has recently ventured into the Oxford property market, motivated by the challenge of securing development opportunities. In partnership with Christchurch Homes, we launched a project featuring 8 bespoke apartments priced between GBP376,000 and GBP483,000 in the Headington area. We are enthusiastic about continuing our investments in this market as more promising properties become available.

Frequently Asked Questions About Oxford Property Investment

Is there an undersupply of new builds in Oxford?

Yes, Oxford is experiencing an undersupply of properties. The city's strong economic growth, anchored by the University of Oxford and thriving research and tech sectors, has led to high demand for housing that is currently not being matched. The limited land availability and stringent planning regulations have constrained new housing developments. This imbalance between supply and demand has resulted in rising property prices and rental costs.

Which areas in Oxford should you invest in?

Renowned for its famous university and historical significance, Oxford's real estate market offers excellent investment opportunities. Here's a breakdown of areas in Oxford that stand out to property investors:

1. Oxford City Center

Oxford city centre has a highHigh demand for rental properties due to its proximity to attractions, amenities, universities, and employment hubs. The area attracts affluent tenants, including students, academics, and professionals.

There is strong potential for short-term lets, particularly during tourist seasons, contributing to higher rental yields.

2. Jericho

This neighbourhood is known for its quaint streets lined with Victorian houses, modern cafes, boutiques and art galleries. It is where history meets modernity and offers a rich cultural experience. JerichoIt is popular with academics and young professionals as it is.

Within walking distance of Oxford city centre and conveniently close to the university campus and train station.

3. Summertown

Summertown is a cosy, upmarket residential area with excellent independent schools, restaurants and boutiques. Houses here (usually) have gardens and car parks, with a strong rental market driven by families and expats looking for quality housing.

How do Oxford rental prices compare to the rest of the UK?

Oxford's rental prices have grown, rising annually by 3.82% from January 2017 to January 2024, exceeding the national average of 3.74%. Oxford's attractiveness as an investment has grown in line with its strong rental market.

What is the average rental yield within Oxford City Centre?

In Oxford City Centre, the average rental yield is 4.3%, with OX1 at 4.2%, OX2 at 3.8%, OX3 at 4.1%, and OX4 at 5.0%.

Locations close to educational institutions such as Oxford University attract a diverse group of tenants ranging from students to academics and professionals. And the excellent location provides tenants with easy access to a variety of attractions and amenities, further increasing the appeal of properties in these areas and allowing landlords to charge premium rents and realise higher returns on their investments.