Property investment in Manchester soars in line with city growth

In recent years, Manchester has seen soaring growth in terms of population, industry and economy. As a result, it has become a prime target for investors seeking new opportunities to gain capital, as well as those looking to make the city their home, knowing their money is well invested in property in the northern powerhouse.

Infrastructure

With 47 new projects currently springing up across the city, Manchester’s infrastructure sector is booming, second only to London.

Arguably the most significant project is the expansion of Manchester airport, which has increased its capacity allowing for new direct routes to the Far East, including Beijing, Hong Kong, and a handful of Middle Eastern hubs this year. The economic benefit of these new routes will support an additional 20,000 jobs and bring nearly £1bn to the UK economy.

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Source: The Huddersfield Daily Examiner

The combined infrastructure growth around the city creates the perfect opportunity for those looking to invest in property, with strong rental yields and good equity growth anticipated.

Residential investment

Recent research has shown that Manchester has been identified as a property hotspot by Middle Eastern and Chinese high net worth individuals, with reports estimating that investment from these groups in the overseas property market, particularly the UK, will increase 50% between now and 2021. This will bring with it a significant level of overseas investment into British housing.

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Property hunters are recognising the capital growth potential in Manchester, with predicted rental yields of up to 6% at developments such as The Hallmark.

Owner-occupiers see the best of both worlds; apartment prices in Manchester increased 52% in the six years between November 2011 and 2017, and show no sign of slowing, making homeownership an appealing prospect. And whilst living there, they get the benefits of being in an exciting quarter of the city. Forty/8 is helping buyers get on or move up the ladder by offering to pay the rent on their current property between exchange and completion, which is anticipated in summer 2019.

Economy and jobs growth

The boom in Manchester’s commercial sector signposts a strong employment market which draws in job seekers, creating high demand for city-centre property. Valued at £59.6 billion, Manchester’s economy is the largest in the UK outside of London and continues to expand rapidly as more and more companies are moving outside of the capital in search of more affordable workforces and commercial space.

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Source: Select Property

Dynamic young professionals in the 18-35-year-old demographic are developing a network of highly qualified talent in Manchester’s flourishing tech and media sectors. These young workers are attracted to the flexibility and affordability of renting, resulting in a significant demand for suitable, quality housing in the city.

Population

Manchester has seen the fastest city centre population growth in the UK between 2002 and 2015, with an increase of 149%. After London, Manchester has the second highest rates of student retention, and draws in the second-highest number of graduates (3.8%) moving from their university towns after graduation.

However, its population is soaring at almost 15 times the rate new homes in the city are currently being built, so more homes are needed across all tenures, including to rent and for sale. At The Hallmark, we are able to sell our apartments to investors fully furnished, and often with tenants already in situ, meaning no break in income and a ready-made revenue stream waiting to be tapped.

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Source: Cushman & Wakefield, ONS

Manchester City Council has become a prime example of how, through nurturing innovation and a commitment to placemaking, it is possible to attract investment and regenerate older sites. The property sector is being challenged to create an enviable environment in which communities can thrive. Early adopters are already reaping the rewards of Manchester’s property market, realising the benefits of investment now.

If you’re interested in finding out more about property investment, be it as a buy-to-let landlord or an owner occupier looking to tap into Manchester’s growth, we’d be happy to discuss potential projects and opportunities with you.

Get in touch to arrange an appointment at our Marketing Suite, open Tuesday – Saturday from 10am – 5pm. You will find us on the Fifth Floor, York House, 20 York Street, M2 3BB.

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