{"id":2470,"date":"2024-04-23T02:50:49","date_gmt":"2024-04-23T01:50:49","guid":{"rendered":"https:\/\/www.ipglobal-ltd.com\/insights\/growing-opportunity-in-greater-manchesters-property-market\/"},"modified":"2024-12-11T10:24:50","modified_gmt":"2024-12-11T10:24:50","slug":"growing-opportunity-in-greater-manchesters-property-market","status":"publish","type":"insights","link":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/insights\/growing-opportunity-in-greater-manchesters-property-market\/","title":{"rendered":"Buy-To-Let Properties In Manchester: A Growing Opportunity In Greater Manchester\u2019s Property Market"},"content":{"rendered":"

How do you know which markets are worth investing in?<\/span><\/p>\n

We hear this question often and wish there was a simple response. Unfortunately, that\u2019s 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 demand are just a few of the key points they research. One must also bear in mind that markets need to be reassessed each year, as they are constantly changing.<\/span><\/p>\n

It is this careful process which makes it all the more thrilling when we encounter a new market that holds great potential for our clients. This year we\u2019re very excited to expand <\/span>our offerings for buy-to-let properties in Manchester,<\/span> a region that continues to go from strength to strength.<\/span><\/p>\n

In recent years we\u2019ve seen impressive development across Greater Manchester, demonstrated most simply by the<\/span> 2.4% GVA growth per annum forecast for 2017-2037<\/span><\/a>. Increasing levels of investment, thriving economic growth, and a vibrant cultural scene make this region one <\/span>that <\/span>property investors cannot ignore. Forecasts for the region\u2019s property market are strong, with population growth and regeneration initiatives driving prices upward \u2013 alongside a demand which is relentlessly increasing.<\/span><\/p>\n

It is these facts that make the county, including the cities of Manchester and Salford - as well as smaller, developing towns such as Stockport and Altrincham - a key region within our 2019 UK investment strategy.<\/span><\/p>\n

\"Manchester<\/p>\n

A Promising Investment Case on All Fronts<\/h2>\n

A leading destination for international business<\/span>, with a thriving population of 2.8 million<\/span><\/a>, Greater Manchester continues to attract new residents. Already the second most populated urban area in the UK after London, Greater Manchester is projected to grow by an additional 7% between 2023-2035, to realize a population of over 3 million.<\/span><\/p>\n

Over 100,000 students attend Greater Manchester\u2019s four universities each year, making the region home to <\/span>one of Europe\u2019s largest student populations<\/span><\/a>. The area also has one of the UK\u2019s highest retention rates for students, outside of London, contributing greatly to the workforce within the Northern Powerhouse area. Manchester has seen an <\/span>increase in employment<\/span><\/a> compared to the previous year. The employment rate in February 2024 was found to be 73.6% (ages 16-64).<\/span><\/p>\n

The growing number of young residents, combined with the quality of the area\u2019s higher education institutes, led to Manchester becoming the first UK city to be shortlisted for the award of <\/span>European Youth Capital<\/span><\/a>, in 2018. This vast University talent pool has also proven to be a major pull factor for international companies looking to expand in the UK, <\/span>making it a lucrative investment area for buy-to-let properties in Manchester.<\/span><\/p>\n

Foreign Investment<\/strong><\/h2>\n

Manchester solidified its position as a centre for investment and economic growth by topping <\/span>Large UK City for Foreign Direct Investment in the FDI Intelligence European Cities and Regions of the Future 2024<\/span><\/a>. Numerous new businesses have been attracted to the Manchester city region - including Amazon, GCHQ, and Jaguar Land Rover. <\/span>Amazon <\/span><\/a>has selected Manchester as the location for its first major UK hub outside of London, taking over 90,000 square feet of office space and creating 600 jobs.<\/span><\/p>\n

Booking Holdings<\/span><\/a>, the technology company behind the hotel website Booking.com, has also recently focused on Manchester, investing GBP100 million and acquiring 220,000 square feet of offices. Commenting on the move, Ian Brown, CEO of Booking.com\u2019s transport division, said, \u2018We are committed to the city of Manchester and its future as one of Europe\u2019s largest and most important tech hubs.\u2019<\/span><\/p>\n

The growth in foreign investment is another reason why buy-to-let property investment opportunities in Manchester should be highly considered, as they could be a way to grow your capital quite rapidly.<\/span><\/p>\n

\"Manchester,<\/p>\n

Improving Transportation Infrastructure<\/strong><\/h2>\n

Manchester is <\/span>ranked in the top five in the Top Large UK city overall<\/span><\/a>, Top Large UK city for Economic Potential Category, and Top Large UK City for Business Friendliness. Graded on both local and international travel connectivity, as well as the overall quality of infrastructure, the area\u2019s recent developments make the ranking well-deserved.<\/span><\/p>\n

Manchester Airport<\/span><\/a>, the UK\u2019s largest regional airport, handles over 22 million passengers a year and offers direct flights to international destinations including New York, Paris and Qatar. The region recently secured a direct air route to India and 2018 marked the second anniversary of a direct Beijing air route, which has already increased export sales from Manchester to China by <\/span>41%, up to GBP 1.29 billion<\/span><\/a>.<\/span><\/p>\n

Given the rapid rate of population growth, the <\/span>government has prioritized improving the county\u2019s transportation infrastructure<\/span><\/a>. Currently, more than 5.6 million journeys are made across Greater Manchester\u2019s transport network each day and this number is only expected to increase.\u00a0<\/span><\/p>\n

An impressive <\/span>2040 Transport Strategy<\/span><\/a> was established in 2015 to help manage the region\u2019s growth. Improvements to the Manchester Metrolink, the largest transport network in the UK, as well as bus routes and road repairs, have been outlined.<\/span><\/p>\n

Regeneration<\/strong><\/h2>\n

Greater Manchester sits at the core of the GBP7 billion <\/span>Northern Powerhouse initiative<\/span><\/a>, announced in December 2014. Aimed at drawing attention to the north of England and boosting local economies, this project is focused on business, cultural, and infrastructure developments. The plan has specifically allocated GBP98 million in funding for cultural and leisure aspects in Manchester and GBP3 million for housing within the city <\/span>including buy-to-let property in Manchester.<\/span><\/p>\n

Following the announcement of the <\/span>Northern Powerhouse initiative<\/span><\/a>, impressive growth has been seen within Manchester. The city\u2019s NOMA area is undergoing a complete renovation, using GBP800 million in funding to create 2.5 million square feet of office space, 1,158 new homes and 400,000 square feet of shopping and leisure facilities.\u00a0<\/span><\/p>\n

The city will also unveil the Manchester Metropolitan University School of Digital Arts (<\/span>SODA<\/span>) in 2021. The university has received a GBP35 million investment to realise the innovative school, set to accommodate 1,500 students each year.<\/span><\/p>\n

\"Drone<\/p>\n

Housing Supply And Demand: Buy-To-Let Property In Manchester<\/strong><\/h2>\n

As Greater Manchester continues to grow and welcome new residents, the area\u2019s housing market has struggled to keep pace with demand. This has led to an undersupplied market and rising sales and rental prices.<\/span><\/p>\n

The GMCA 2018 <\/span>Greater Manchester Spatial Framework<\/span> outlines that the county requires a minimum of 201,000 net additional homes <\/span>to<\/span> be developed from 2018-2037, to match the area\u2019s demand.\u00a0<\/span><\/p>\n

The Greater Manchester Strategic Housing Market Assessment <\/span><\/a>sets out an annual housing requirement figure of 10,583 new homes per annum for the whole of Greater Manchester. GMCA, however, has reported that since 2008, only approximately 3,000 new homes have been built every year in Greater Manchester, resulting in a shortfall of more than 8,000 units.<\/span><\/p>\n

In reaction to this undersupply,<\/span> we\u2019ve seen prices across the county rise significantly<\/span><\/a>. Between January 2012 - April 2024 the cost of flats in the county increased from an average price of GBP99,299 to GBP242,000. <\/span>This is a positive outlook for all buy-to-let property investment opportunities in Manchester.<\/span><\/p>\n

Which Greater Manchester Markets Deserve A Closer Look?<\/strong><\/h2>\n

Altrincham<\/strong><\/h3>\n

\"City<\/p>\n

Altrincham is a modern market town with a thriving business community. Attracting some of the highest property prices outside of London, the town is an established area for residential investment. Significant public and private funding <\/span>has<\/span> enhanced the area in recent years, with a new general hospital, large retail outlets, and a multi-screen cinema being realized.<\/span><\/p>\n

Known for its affluence and younger demographic than the rest of Trafford, recent developments are also helping entice new residents <\/span>meaning that there is a greater need for buy-to-let properties in this Manchester suburb.<\/span> In 2018, Altrincham was<\/span> ranked as the best regional place to live <\/span><\/a>in the UK.<\/span><\/p>\n