APRIL MARKET OVERVIEW
The Cardiff property market has seen notable shifts in Q1 2025, with various factors influencing buyer and seller behaviour, along with broader trends in the UK housing market. As we enter the second quarter of the year, Cardiff’s property landscape offers a mix of opportunities and challenges for both homeowners and investors.
RESIDENTIAL PROPERTY MARKETING TRENDS
In the residential market, Cardiff continues to experience a steady demand for housing. The average house price in January 2025 was £274,000, up 5.8% from the previous year, slightly below the rise seen across Wales. There has been a noticeable resilience in property prices despite economic uncertainties, though growth rates have moderated compared to the peaks seen during the pandemic-driven housing boom. According to the latest data from property portals and local estate agents, average house prices in Cardiff have increased by 2-3% compared to Q1 2024, reflecting the ongoing demand for homes in the city.
Certain areas within Cardiff, such as Pontcanna, Roath, and Canton, have seen higher-than-average price growth. These neighbourhoods remain popular due to their vibrant community atmosphere, proximity to the city centre, and excellent transport links. Meanwhile, more suburban areas, such as Llanishen and Rhiwbina, have also experienced a steady increase in interest from families and first-time buyers, drawn by more affordable options compared to the city’s inner zones. For first-time buyers, the average price paid for a home was £236,000, a 6.5% rise compared to the previous year. Mortgage buyers saw an average price of £275,000, up 4.7% from the year before.
Different property types saw varying price changes, with flats increasing by 7.9%, while semi-detached and terraced homes rose by 4.9%.
One of the notable trends in the Cardiff market is the growing demand for energy-efficient and sustainable homes. Buyers are increasingly prioritising properties with green credentials, such as solar panels, modern insulation, and energy-efficient heating systems. This shift is partly driven by rising energy costs and the increasing desire for long-term cost savings.
RENTAL MARKET INSIGHTS
The rental market in Cardiff has seen some fluctuations, with rental yields remaining relatively strong but showing signs of slight moderation. Cardiff’s popularity as a university city, with over 30,000 students attending institutions like Cardiff University, continues to ensure a robust demand for student accommodation. However, rising interest rates have affected landlords’ ability to secure favourable mortgages, leading some to reconsider their property portfolios.
Despite this, Cardiff’s rental market remains competitive, especially for properties in the city centre and near major transportation hubs. The availability of high-quality, well-located rental properties has remained tight, and demand for these units has kept rental prices relatively stable. For example, rents for a two-bedroom apartment in the city centre now average around £1,100 per month, marking a 9.2% increase from February 2024.
Rents for detached properties rose by 9.7%. The rent for larger homes (four or more bedrooms) saw the most significant rise at 11.2%. The average rent for one-bedroom properties was £850, while four-bedroom homes averaged £1,592 per month.
Commercial Property Market Overview
The commercial property sector in Cardiff has faced a mixed bag of performance in Q1 2025. While office spaces in central Cardiff have seen some reduced demand, particularly with the shift towards hybrid and remote working, there has been a noticeable increase in demand for flexible, co-working office spaces. The tech and creative industries in Cardiff continue to thrive, contributing to a stable demand for flexible office solutions.
Retail properties, particularly in and around Cardiff’s city centre, are also facing challenges, with many retail tenants seeking shorter leases due to the ongoing impact of online shopping. However, Cardiff has seen a gradual recovery in its retail sector, with high street areas like Queen Street and St. David’s Shopping Centre benefiting from a return of foot traffic as consumers resume in-person shopping experiences.
Commercial Property Market Overview
Looking ahead to Q2 2025, the Cardiff property market is expected to continue its gradual growth trajectory. The demand for both residential and commercial properties remains high, supported by Cardiff’s reputation as a thriving city for work, education, and leisure. However, affordability will remain a key issue for both buyers and renters, with rising living costs and interest rates continuing to put pressure on many households.
Overall, while the Cardiff property market faces challenges, its long-term growth prospects remain solid, making it an attractive option for those looking to invest in property.
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