It’s no wonder the demand for buy-to-let in Cardiff has gone through the roof in recent years. Most major capital cities simply don’t offer the same affordability and range of opportunities for property investors.
The city’s thriving job market, extensive regeneration projects and year-round schedule of world-class events make it one of the best places to live in the UK.
Plus, the city lays claim to a diverse population of approximately 400,000 residents, which consists of a healthy mixture of professionals, families and students – something to suit the criteria of every prospective landlord.
If you’re currently considering a buy-to-let property in Cardiff, this guide will walk you through everything you need to know!
Cardiff: An Overview
Cardiff is situated on Wales’ south coast and is regarded as the cultural and economic heart of the country.
The city’s student base is spread across four major institutions for higher education – Cardiff University, Cardiff Metropolitan University, the University of South Wales, and the Royal Welsh College of Music & Drama. The total number of students is around 80,000, which works out to roughly 20% of the city’s population.
Cardiff has seen extensive private sector investment in recent years, particularly in sectors such as finance, technology, education, healthcare and creative industries. Cardiff’s growing multi-industry economy is causing population growth, with a robust job market that remains strong even during economic difficulty.
The city is well-connected to the rest of the UK by excellent rail and road networks, including the M4 motorway which links Cardiff directly to London, as well as the surrounding cities of Swansea, Newport and Bristol. Residents also enjoy convenient access to Cardiff International Airport, a major hub that connects the city to destinations across Europe and beyond.
Cardiff is a choice destination for shopping, dining and entertainment, and many visitors travel from further afield to enjoy this side of the city, especially on weekends. That makes the city a lucrative destination for landlords with short-term rentals and Airbnb. It’s also known for its abundance of parks and green spaces, including Bute Park and Roath Park.
Why Is Cardiff A Good Choice For Property Investors?
Cardiff is a good choice for property investors because it offers access to an under-priced growth market with an excellent economy, high demand, and long-term growth. The blend of affordable house prices with a large pool of potential tenants makes it an extremely attractive destination for investors of all budgets.
The four main reasons we love Cardiff for property investment are:
- Relative affordability
- A thriving rental market
- Ongoing urban regeneration
- A strong local economy
Relative affordability
Cardiff has great market fundamentals, and property prices in Cardiff are a steal compared to other capital cities in the UK.
According to Rightmove, the majority of sales in Cardiff during the last year were terraced properties, selling for an average price of £272,847 (as of November 2024). Flats sold for an average of £174,077, with semi-detached properties fetching £322,748. That’s a far cry from the average house prices in London, currently £690,062, and Edinburgh, currently £335,919.
Thriving rental market
Cardiff boasts strong, consistent demand for rental properties as a major hub for business and education, not only for Wales but the UK as a whole. Here, landlords find a range of property types: modern apartments in the city centre, student accommodation, suburban terraces, semis, and detached family homes.
Ongoing urban regeneration
Cardiff Bay is the perfect example of the council’s commitment to regeneration. Once a bustling coal port, the area has been transformed into Europe’s largest waterfront development, complete with stunning residential property, shopping centres, restaurants, and cultural attractions. Other areas, such as Central Square, St. David’s, and Leckwith have also seen huge investment in recent years, particularly in the area around the sports stadium.
Strong local economy
As you’d expect from a capital city, Cardiff is home to many major corporations, public sector organisations, and financial and business services – strong pillars of the local market with companies such as Admiral and Hugh James headquartered in the city centre.
The cultural scene, busy nightlife, and calendar of sporting events also draw in floods of tourists all year round. This should be of interest to landlords offering short-term rental properties or Airbnb apartments.
Top 5 Buy-To-Let Areas In Cardiff
So, which are the best postcodes to consider when looking for a buy-to-let in Cardiff?
Using industry data, we’ve picked out the five best hotspots across the city and surrounding region.
How does our data work?
There are 35 postcode districts in Cardiff and the wider area.
We scored each postcode by its average rental yield and growth in property values over the past five years:
- The postcode with the highest average rental yield receives 35 points. The second-best receives 34 points. And so on.
- The postcode with the highest growth receives 35 points. The second-best receives 34 points. And so on.
- The rental yield score is multiplied by three to give it a stronger weighting (yield should take slight precedence for a buy-to-let)
- The two scores are added together to calculate a final score, by which the results are ordered.
Here are the results:
| Postcode | Avg Price | Avg Rent | Avg Yield | Weighted Score | 5yr Price Change | Score | Total Score |
|---|---|---|---|---|---|---|---|
| CF24 | £252,099 | £2,185 | 10.4% | 105 | 23% | 17 | 122 |
| CF37 | £162,959 | £958 | 7.1% | 93 | 28% | 23 | 116 |
| CF10 | £189,109 | £1,234 | 7.8% | 99 | 4% | 11 | 110 |
| CF63 | £210,829 | £933 | 5.3% | 78 | 36% | 32 | 110 |
| CF11 | £242,360 | £1,167 | 5.8% | 87 | 28% | 22 | 109 |
1) CF24 – Roath, Adamsdown, and Splott
CF24, covering Roath, Adamsdown, and Splott, is the standout area for buy-to-let investors in Cardiff.
At 10.4%, CF24’s average yield is far beyond anything else achieved in the city. That’s further supported by a 23% increase in property values – a sure sign of high demand. As such, for investors wanting to maximise their income, CF24 has it all.
But why does it perform so well?
Roath is particularly popular with Cardiff University students, while Adamsdown and Splott attract professionals seeking affordable living close to the city centre. In short, the central location is the main contributor to tenant demand, which sustains a robust rental market and keeps vacancy rates low.
2) CF37 – Pontypridd
With an average house price of just £162,959 and an annual rental yield of 7.1%, it’s no surprise many investors are turning their attention to the town of Pontypridd – located just 12 miles north of Cardiff. The town has convenient access to the Welsh capital via the A470 road, which connects both to Cardiff and the M4 motorway.
Pontypridd is home to the University of South Wales, which attracts a large student population every year. As a result, there’s a consistent demand for student accommodation in the CF37 area, making it an attractive option for property investors interested in the student rental market.
3) CF10 – Cardiff City Centre, Cardiff Docks, Cardiff Bay
The CF10 postcode is the place to be for residents who want to live among the hustle and bustle of Cardiff city centre. The area is popular among students attending Cardiff University and young professionals who want an easy commute to work – in the city itself or a train ride away from Cardiff Central Station.
Residents also benefit from easy access to Bute Park, Cardiff Castle and the Principality ‘Millennium’ Stadium – which regularly hosts a wide range of high-profile sporting and musical events.
The centre offers a diverse range of property types, including modern apartments, historic townhouses, and luxury developments. Investors typically enjoy strong rental yields of 7.8% per year, while maintaining accessible average house prices of £189,109.
4) CF63 – Barry
Famed for its appearance on the hit TV show Gavin & Stacey, the seaside town of Barry is situated 20 minutes to the southwest of Cardiff. More importantly, it’s an easy commute to the capital city with constant development interest, an emerging cultural identity, and rapidly increasing appeal for young professionals.
It’s a popular location for professionals, families, and business travellers seeking a coastal lifestyle, while still having easy access to the big city.
Barry has seen several regeneration initiatives in recent years aimed at improving the town’s infrastructure, public spaces and cultural amenities. Barry Island in particular has undergone significant redevelopment, making it a popular tourist destination and catalyst for increasing property values and rental demand.
5) CF11 – Ninian Park
Another hotspot for buy-to-let investment, CF11 covers the western suburbs of central Cardiff, including the area around Ninian Park (home to Cardiff City Football Club). Properties in the area are popular among professionals and families looking for a slightly more relaxed pace of life.
There’s an eclectic mix of houses, townhouses, and apartments that cater to different tenant demographics. It’s a fairly affluent part of Cardiff, reflected by the above-average prices (£242,360), but it’s in demand – around 30 properties sell in CF11 each month (one of the most frequent in the city), leading to a 28% increase in values over the past five years. Realistically, this is better for investors with bigger budgets and less focus on rental income, although the average 5.8% should keep any rental property running at a healthy profit.
Summary
With a thriving local economy and countless higher education opportunities, rental property in Cardiff is an excellent, affordable alternative to the likes of London and Edinburgh, but with many of the same benefits. In our opinion, as other cities experience challenges to affordability, Cardiff remains under-priced.
With incredible fundamentals, character, and long-term prospects, it’s easy to see why so many property investors are looking to the Welsh capital for their next investment property.
If you want to join them, then we can help.
We support investors looking for buy-to-let and off-plan opportunities across the UK. Our clients get access to hand-picked property developments that match their goals and budget, while offering higher returns and lower risk.
Whether you’re an experienced or first-time property investor weighing up your options around the Cardiff area, feel free to get in touch with our friendly team using the form below to discuss your situation and objectives.
Our advisors draw on years of experience supporting investors across South Wales and beyond. We’re here to help you source and deliver exceptional buy-to-let property investment opportunities ethically and at no extra cost.
If you are considering investing in a property in Cardiff then make sure to read up on Rent Smart Wales, which is designed to assist those who let or manage rental properties in Wales to comply with the Housing (Wales) Act 2014.
About Our Data
The yield and price data outlined in this report is taken from propertydata.co.uk. It provides an accurate representation of Cardiff’s property market as of November 2024. We will update the report next year, in 2025, with fresh data.
