Inverness, known as the capital of the Highlands, has been steadily gaining attention among property investors in recent years – and with good reason. Combining scenic beauty, cultural charm, economic growth, and reliable rental yields, this city offers a well-rounded opportunity for landlords. Whether you’re a first-time investor or looking to expand your portfolio, understanding which areas offer the best potential is key.
At Belvoir Inverness, we’ve spent years helping landlords maximise their investments in the local market. From traditional Victorian flats near the River Ness to modern homes in developing suburbs, we understand what tenants are looking for – and where demand is strongest.
Andy Campbell, Director of Belvoir Inverness, explains:
“Inverness has always had a strong and steady rental market, but in the past few years, we’ve seen a real spike in demand. That growth isn’t just in the city centre either – it’s extending to suburbs and commuter areas where rental yields remain strong and property values are rising steadily.”
Here’s our in-depth guide to the best areas to invest in Inverness in 2025 – plus advice on how to make your investment count.
Why Inverness is a smart location for landlords
Before we look at specific neighbourhoods, it’s important to understand why Inverness holds long-term appeal for property investors:
- Consistent tenant demand: From healthcare workers at Raigmore Hospital to students attending the University of the Highlands and Islands, there’s always a steady flow of reliable tenants.
- Stable house prices: Inverness has shown gradual but resilient price growth year-on-year, with fewer dramatic swings than other UK cities.
- Tourism and short-let potential: As a gateway to the Highlands, Inverness also supports a seasonal short-let market.
- Quality of life: Clean air, access to nature, and a sense of community make it a popular relocation destination.
All of this contributes to a healthy rental market with good yields and low void periods.
The top investment areas in Inverness
1. Crown
Situated just east of the city centre, Crown is a highly desirable area for both tenants and homeowners. It’s close to excellent schools, the city centre, and the hospital, making it ideal for families and professionals alike.
Why invest here?
- High rental demand year-round
- Close to Inverness Royal Academy and city amenities
- Mix of flats and houses offering a range of investment options
Ideal tenants: NHS workers, professional couples, young families
2. Inverness City Centre
The city centre remains a strong performer for those looking to invest in smaller units like one- and two-bedroom flats. These attract students, professionals, and young renters.
Why invest here?
- High tenant turnover but strong yields
- Excellent access to transport, nightlife, shopping, and dining
- Popular for both long-term and short-let rentals
Ideal tenants: Students, young professionals, contractors
3. Dalneigh
Often overlooked by investors, Dalneigh is a residential area west of the city centre offering great value. It has a diverse rental base, from students to working families.
Why invest here?
- More affordable property prices compared to Crown or the city centre
- Good access to UHI and central Inverness
- Solid rental yields and low entry costs
Ideal tenants: Students, young families, low- to mid-income professionals
4. Ballifeary
Ballifeary is a leafy, sought-after area along the River Ness with Victorian homes, green space and a quieter atmosphere. It’s close to Eden Court Theatre and the city centre, attracting a more mature or professional tenant.
Why invest here?
- Higher-end market segment
- Consistently strong capital growth
- Longer tenancies and lower turnover
Ideal tenants: Retired professionals, executives, corporate lets
5. Raigmore
Home to Raigmore Hospital, this area has constant rental demand from medical staff. It’s also popular with students and commuters due to easy access to the A9 and the university campus.
Why invest here?
- Direct demand from NHS staff
- Mix of flats and houses suitable for HMOs or single lets
- Growing infrastructure around the area
Ideal tenants: Hospital staff, students, couples
Emerging areas to watch
6. Milton of Leys
One of Inverness’s newest suburbs, Milton of Leys has seen major residential development in recent years. It offers modern family homes and excellent commuter links.
Why invest here?
- Strong appeal to families and relocating professionals
- New-build properties with low maintenance
- Good long-term appreciation potential
Ideal tenants: Families, mid-career professionals
7. Smithton and Culloden
These neighbouring areas offer good rental stock, access to schools, and growing popularity among renters who want a balance between city and village life.
Why invest here?
- Lower entry costs than central Inverness
- Popular with working families
- Close to Inverness Retail Park and main A96 road
Ideal tenants: Families, commuters, long-term renters
Tips for making a successful buy-to-let investment
1. Define your goals
Are you looking for monthly income, capital growth, or both? This will help determine the right property type and area for you.
2. Know your target tenant
Consider whether you want to rent to students, families, professionals, or short-let tourists. Each has different needs.
3. Understand the local licensing laws
Inverness has rules around HMOs, landlord registration, and energy standards. We can help you stay compliant.
4. Consider the property’s condition
Refurbished homes command higher rents and reduce maintenance headaches. Don’t overlook basic energy upgrades.
5. Work with a local agent
A knowledgeable agent can help you choose the right investment, price it correctly, and find the best tenants.
How Belvoir Inverness supports investors
As part of a national network with strong local roots, Belvoir Inverness offers a full suite of investment services:
- Sourcing and sales: We help identify the right properties in high-performing areas.
- Rental appraisals: We offer free rental valuations based on current market data.
- Lettings and property management: From tenant sourcing to maintenance, we manage everything.
- Portfolio advice: For experienced landlords, we help refine and grow your investment.
Andy Campbell adds:
“What sets us apart is that we don’t just talk numbers. We know which streets are rising stars and where the hidden opportunities lie. Whether you’re just starting out or adding your tenth property, we’ll support you every step of the way.”
Final thoughts: Is now a good time to invest in Inverness?
With average rents in Inverness continuing to rise and tenant demand holding strong, 2025 is shaping up to be a solid year for property investment. Mortgage rates have stabilised, and landlords who buy strategically can still achieve strong net returns.
Inverness offers investors:
- Low vacancy rates
- Broad tenant demographics
- Long-term growth potential
The key is choosing the right area and working with a local expert.
Ready to get started?
Whether you’re a hands-on investor or want a fully managed experience, our team at Belvoir Inverness is here to help. Start with a free rental appraisal or a chat about your goals.
Belvoir Inverness — helping landlords invest smarter in the Highlands.
