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Property investment stats for Colchester, East of England

A complete guide to property investment in Colchester.

Last updated: 18 September 2025

Investment summary

Colchester stands out for investors seeking a mix of rental demand and affordability. The area has a strong private rented sector, sitting in the 81st percentile nationally, and a notably high student population in the 92nd percentile. This supports steady rental demand, reflected in the average rental yield of 6.0%. Despite a 1-year capital growth of -3.2%, the 3-year capital growth of 9.2% and annualised growth of 3.0% suggest longer-term value.

Image of Colchester, East of England

Key investment stats for Colchester

Median price per sq ft

£340 / sq ft

Average rental yield

6.0%

Capital growth (1y)

-3.2%

Sales in past year

1,637

* Property stats calculated for last full calendar year (2024).

Live property stats in Colchester

Live prices in Colchester, East of England

* Extreme prices clipped for legibility

Properties for sale

Median price

£310,000

25% of properties below...

£190,000

75% of properties below...

£425,000

Most expensive property

£4,000,000

Live listings

1,273

Median days on market

63

Should you invest in Colchester?

Opportunities

  • The private rented sector is robust, with a high proportion of renters and a student population in the 92nd percentile, supporting ongoing rental demand.
  • Investors can benefit from strong rental yields of 6.0%, especially in the top-performing postcode district with a yield of 6.5%.
  • The price-to-income ratio of 5.3 and rent-to-income ratio of 23.8% indicate relative affordability, which may attract both tenants and buyers.

Risks

  • The 1-year capital growth of -3.2% signals that short-term price performance has softened, so investors should be prepared for potential volatility.
  • A high student population in the 92nd percentile means rental demand could fluctuate with academic cycles.
  • The area’s owner-occupier rate is low (27th percentile), which may limit buyer pool diversity and affect resale options.

Outlook

Colchester’s outlook for investors is shaped by its large student and young professional populations, which are likely to keep rental demand resilient. The days on market of 63 days and annual sales of 1,637 point to a liquid market, while the median discount of £0 (the typical achieved discount) suggests sellers are achieving their asking prices.

While the 3-year capital growth of 9.2% and annualised growth of 3.0% are positive, the recent 1-year capital growth of -3.2% means capital appreciation may be less predictable in the short term. Investors should focus on income returns, as the combination of high yields and affordability make Colchester a pragmatic choice for those seeking steady rental income rather than rapid price gains.

Live properties in Colchester

Investment properties in Colchester, East of England

3 bedroom semi-detached house for sale
32% below median price

£250,000 - Offers Over

3 bedroom semi-detached house for sale

The Willows, Essex, CO2 8

Properties needing refurbishment in Colchester, East of England
Needs Refurb
3 bedroom end of terrace house for sale
On market for 178 days

£250,000 - Guide Price

3 bedroom end of terrace house for sale

Rawstorn Road, St Mary's, Colcheste...

Slow to sell properties in Colchester, East of England
Slow to Sell
2 bedroom retirement property for sale
Reduced by 31%

£229,995

2 bedroom retirement property for sale

Butt Road, Colchester, Essex, CO...

Big price drop properties in Colchester, East of England
Big Price Drop
5 bedroom terraced house for sale
High yield opportunity

£300,000

5 bedroom terraced house for sale

Hatcher Crescent, Colchester, CO2

HMO properties in Colchester, East of England
HMO
5 bedroom detached house for sale
2,712 sq ft

£800,000 - Guide Price

5 bedroom detached house for sale

Ipswich Road, Colchester

Properties with planning granted in Colchester, East of England
Planning Granted
1 bedroom retirement property for sale
50% below median price

£87,500

1 bedroom retirement property for sale

Salter Court, St Marys, Central Col...

Low price-per-sq-ft properties in Colchester, East of England
Low Price per Sq Ft
4 bedroom semi-detached house for sale
37% below median price

£270,000 - Guide Price

4 bedroom semi-detached house for sale

1 Drury Road, Colchester, Essex CO2...

Auction properties in Colchester, East of England
Auction

Achieved vs asking prices

Key takeaway: Seller's market

Asking and achieved prices are broadly aligned — little negotiation room on average.

Headline stats

• Median discount: £0

• 1 in 4 properties sell at > £5,000 below asking

• 1 in 10 properties sell at > £15,000 below asking

In percentage terms:

• Median discount of 0.0%

• 25% of properties discounted by > 2.1%

• 10% of properties discounted by > 4.2%

Best places to invest in Colchester

Top postcodes for rental yield and (annualised) capital growth

Rank
Postcode
Yield
Capital growth
Median £/sq ft
1CO16.5%3.5%£314 / sq ft
2CO26.3%3.6%£328 / sq ft
3CO45.7%3.9%£350 / sq ft
4CO35.0%1.9%£355 / sq ft

Data sources

GeoGlider calculates property investment stats by blending official and proprietary datasets. Here's a quick overview of key sources and how we use them:

  • HM Land Registry: Property transaction and sold-price records for England & Wales used to calculate historical capital growth, price levels and comparables.

  • Office for National Statistics (ONS): Demographic and economic indicators for the UK, including Census 2021, supporting area profiling and market context.

  • Ordnance Survey: Authoritative UK geospatial data powering accurate boundaries, roads and terrain for mapping and spatial analysis.

  • GeoProp: Our proprietary AI pipeline that processes millions of property listings to extract rich features and live market signals.

  • Department for Levelling Up, Housing & Communities: Energy Performance Certificate (EPC) scores and property floor areas.

  • HM Revenue & Customs (HMRC): Household income and employment data to understand local affordability and economic conditions.

Data is updated continuously, matched across sources and rigorously validated.