Why Invest in Manchester: Market Trends and Forecasts

09 May 2023

The Manchester property market has been gaining popularity amongst international investors, and for good reason. As the second-largest economy in the UK, Manchester offers a strong and diverse economy, a growing population, and a thriving rental market. In this blog post, we'll explore the current market trends and forecasts for the Manchester property market, as well as highlight recent developments and investment opportunities in the area.

Growth potential

Manchester's growth potential is undeniable. The city's economy is expected to grow by 3.3% annually over the next decade, and its population is predicted to increase by 6.6% by 2041. Manchester's key sectors, including professional services, manufacturing, and digital technology, are driving this growth. Additionally, the city has a number of major regeneration projects underway, such as the £1.4 billion Manchester Life development and the £3.5 billion Northern Powerhouse Rail project.

Economic indicators

Manchester's economy is supported by strong infrastructure and transport links. It has a large international airport, two major railway stations, and a modern tram system. The city also has a number of major regeneration projects in the works, including the £1.4 billion Manchester Life development and the £3.5 billion Northern Powerhouse Rail project.

Rental demand

Manchester has a high demand for rental properties, driven by its large student population and young professional demographic. The city is home to several prestigious universities, including the University of Manchester and Manchester Metropolitan University, which attract students from across the world. Additionally, Manchester has a thriving cultural scene, including its famous music scene and world-class sports facilities, which make it an attractive location for young professionals.

Recent developments

Manchester has seen a number of major developments in recent years, including the MediaCityUK development, which houses the BBC and ITV studios, as well as a number of other creative and digital businesses. The city is also home to a number of world-class sports facilities, including the Manchester City Football Club's Etihad Stadium and the Manchester United Football Club's Old Trafford stadium. Take a look at the most recent developments in Manchester here.

Investment opportunities

Manchester's property market offers a wide range of investment opportunities, from buy-to-let properties to commercial developments. The city has a number of affordable areas that offer strong rental yields, as well as more upmarket areas that are popular with young professionals. Additionally, Manchester's strong economy and growing population make it an attractive location for commercial investors.

In conclusion, the Manchester property market is a great option for investors looking for long-term growth potential and rental income. With its strong economy, growing population, and thriving rental market, Manchester offers a wealth of investment opportunities for both residential and commercial property investors. So, if you're looking to invest in property, consider Manchester as your next destination.

If you have any questions, please don't hesitate to reach out to us here and we'll be in touch.

Where to invest in Manchester?

Investors looking for buy-to-let properties 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 buy-to-let investors exploring lucrative 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.