• #1 UK Business Hotspot outside of London
• #3 Best City in the World (Time Out)
• UK’s Most Liveable City (The Economist’s Global Liveability Index 2022)
Receive the latest insights on Manchester's real estate market by downloading the investment case below.
Known for its long-established industrial heritage, Manchester has always been at the forefront of production. But since undergoing massive regeneration in the mid-1990s, the city has seen tremendous growth on all fronts, becoming one of the most economically diverse cities in the UK, investing in Manchester property is a lucrative opportunity.
Greater Manchester county, encompassing Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford, Wigan and the cities of Salford and Manchester, is now one of the largest metropolitan regions in the UK and the second-most populous area in England. It generates nearly 40% of total output (GVA) in the North West and 19% across the north of England, establishing itself as a major powerhouse for the northern economy.
Manchester has one of the largest student populations in Europe, with a large portion of students choosing to remain in the city after graduation to kick start their careers. A multitude of job opportunities combined with an attractive lifestyle continues to attract new residents.
The city is a hub for arts and culture, as well as a global centre for sport, especially football, as it is home to the 4th most valuable football club in the world, Manchester United. Old Trafford stadium, located southwest of the city in the borough of Trafford, regularly hosts sell-out crowds of 85,000+.
Manchester’s thriving economy has attracted a flood of new residents, placing increased pressure on the undersupplied housing market. With all these factors aligning, property investment in Manchester is one of the strongest opportunities in the UK.
Greater Manchester, encompassing ten metropolitan boroughs, including Manchester City, Salford and Trafford, has a total population of 2,791,000 as of 2023, which is forecast to rise to 2,907,180 by 2025 and 2,959,605 by 2030. This places it as the second most populous urban area in the UK after London.
Savills predicts that Manchester will experience a robust 24.3% increase in house prices by 2026. This forecast surpasses the UK's average growth rate and stands as one of the highest regional growth figures, outpacing London's 8.2% and the UK national average of 17.4%.
Manchester’s GDP has grown by 240% since 2000. By 2026, GDP in Manchester’s local economy is expected to be £7.5 billion larger than in 2022. By 2035, the economy is expected to reach £58.4 billion per annum, with the number of households in the higher income brackets projected to have grown by 288% since 2021.
Manchester’s regeneration and economic initiatives have propelled the city into the foreground of investment potential. Demand for investment property in Manchester continues to be on the rise due to the bustling population of young professionals who are the prime drivers of Manchester’s prosperous rental market.
With three major universities and a huge population of students, including one of the largest populations of international students, Manchester continues to garner significant interest among Generation Y. These new movers are the beating heart of Manchester’s growing economy as innovation, new industries and start-ups inject new opportunities into the UK’s second-wealthiest city.
With the rising cost of building materials putting pressure on an undersupplied housing market, the demand for accommodation is growing fiercer. Due to the demographic profile of Manchester and current economic headwinds, a larger portion of the population is entering the rental market, bolstering rent price growth. These factors, along with currency advantages, culminate in an ideal environment for international buy-to-let investors to take advantage of investing in Manchester property in 2024.
Manchester’s rental demand is at the highest it has ever been, with 38% of its employed residents under the age of 25. Manchester’s graduate retention rate is second only to London at 51%, bringing in consistent demand for rentals every year from one of the largest student populations in Europe. Career opportunities for young, aspiring professionals are lucrative in the city, with many major firms and businesses expanding their reach to benefit from the young and highly educated talent pool.
Between 2023 and 2027, rents in Manchester City are expected to increase by a further 21.6%, surpassing the national average of 15.9% over the same period. This accompanies the trend of household incomes rising, indicating more residents have access to larger disposable incomes. This makes investing in Manchester property an attractive opportunity for global investors.
As Manchester continues to grow in both its population and economy, the housing market is under immense pressure to keep up with the increasing demand. There is a substantial undersupply of homes, with just 34% of the city’s housing needs fulfilled over the past 9 years. By 2031, forecasts anticipate an undersupply of at least 82,505 homes.
As a result, house prices are on a rising trajectory. Property prices are anticipated to experience a 19.3% increase between 2023 and 2027. With demand driving up the prices, Manchester promises to offer an attractive return on investment after experiencing a 6% rise in house prices in 2022 alone, according to JLL.
Greater Manchester is the largest city region economy outside of London. There are approximately 1.6 million jobs that contribute towards Greater Manchester’s GDP of £102 billion (2023). Among the businesses that hire from the young and highly skilled pool are Europe’s second-largest cluster of media businesses driven by MediaCityUK in Salford Quays – home to the likes of the BBC and ITV.
Creative and digital industries are drawn to Manchester, making the city a hub for innovation and technology. Major finance firms have been established in the city to take advantage of rapid capital growth inspired by the expanding population and central location within the country.
Manchester’s central location in the heart of the UK is a significant benefit as it’s very well connected by rail to all the other major cities in the country, including direct links to London. The station recorded 32.1 million entries and exits in 2019 and 2020 and is seeing visits ramp up as COVID-19 comes to a close.
Within the city, commuters benefit from Manchester Metrolink, which currently encompasses 7 lines with 99 stops and is undergoing major extensions. The most recent, finished in 2020, is the Trafford Park Line, which cost £350 million. With the outer suburbs linked to Greater Manchester, the investment property potential within Manchester has become lucrative for global investors.
The Manchester Core Strategy 2027 aims to regenerate five key locations in the city. Projects promise to bring in new jobs, convenient amenities, office space for start-ups and new homes. Among the most ambitious projects is Circle Square which is already underway and expected to create 10,000 new jobs in the region. The development will consist of 1.2 million sq. ft. of workspace, 1,700 new homes and over 100,000 sq. ft. of retail, leisure space, restaurants, bars, and cafes.
Other exciting projects seek to inject new life and entice new industries into the city. The Factory is a £110 million development which is due to open in 2023 and will be the new home of the world-renowned Manchester International Festival.
IP Global's dedication to navigating investors through the complexities of property investment remains unwavering. Having extended its reach to the Manchester property investment market in 2015, the company has successfully brought to market 17 property developments on behalf of its clients. With a cumulative investment value exceeding USD300 million, IP Global continues to be a trusted partner for investors seeking to thrive in the Manchester real estate market.
How do you know which markets are worth investing in? We hear this question often and wish there was a simple response. Unfortunately, that’s not the case. When our team of investment experts reviews global markets, there are all sorts of factors that contribute to their evaluation; population growth, infrastructure, and current levels of housing […]
Continue ReadingThose who are looking for investment properties for sale in Manchester need to consider the tenant profile in each area. Salford Quays commands a robust rental demand primarily from 30+ professionals employed in the Creative, Digital, and Technology sectors, earning an average salary of £40,000 or higher. The rental market in this region is most active for one-bedroom and two-bedroom units, catering to couples or singles. Looking at a case study from Complete Prime Residential of 101 one-bed, two-bed and three-bed units under management, the average secured tenancy term has been 11 months with a 5.45% current average rental yield in the area.
For those exploring lucrative investment property in Manchester with options beyond Salford, the Trafford region offers considerable potential for growth and ROI. The area's up-and-coming status has resulted in a younger tenant pool than neighbouring Salford Quays, typically comprising early-twenties professionals earning between £20,000 and £25,000 annually. The most preferred rental options in this region are one-bed and two-bed apartments. Our expert analysis reveals that investing in these regions could offer substantial returns on investment, with up to 5.8% rental yields.
The average rental yield for investment property in Manchester sits between 5-7%, however, this figure does not take into account individual areas, tenancy agreement types (short-term vs long-term lets) and property size. It is important to consider the rental yield according to comparable investment properties in Manchester before making any buy-to-let purchase. For a better understanding of yields and the factors that impact them, download our guide: Is the Door Closing on Short-Term Lets?
We are constantly reviewing the investment market. For more information about investing in the Manchester property market, our experts can discuss it with you in detail and provide guides. Please don’t hesitate to get in touch to request more information.
This is an opportune time for investing in Manchester property to be able to achieve the highest ROI with the rental and property price forecasts due to rise over the next 10 years.
Over the years, Manchester has accumulated an impressive collection of regeneration projects that have completely transformed the city's landscape. These schemes are a key factor in Manchester’s impressive economy and population growth.
These are some of the major regeneration projects taking place in Manchester. Many smaller projects are also happening throughout the city that are helping to transform it into a thriving and modern metropolis.
Manchester, UK
The Bailey is a modern development comprised of 104 one- and two-bed apartments situated alongside St Georges Park with views of Deansgate to the northeast.
Manchester, UK
Waterside West is a collection of 108 contemporary apartments set beside Manchester’s historic Bridgewater Canal.
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