In the last few years, the city of Manchester has solidified itself as the northern hub of the UK, offering some of the best investment opportunities for both UK-based and international investors. The city is now widely known for its property market in a number of sectors, including residential, buy-to-let and commercial. Manchester is now one of the first options for investors looking for UK opportunities, with the promise of capital gains and impressive returns on investment.
While London has always been the 'go-to city' for investment opportunities in the UK, Manchester has put itself at the forefront recently, especially following the referendum, to see a growing number of investors choosing this north-west hub over the capital. Between 2011 and 2016, the economy of the Greater Manchester area grow by 19% - a figure that is continuing to increase into 2019. The city attracts 120 million visitors annually (Manchester Evening News, 2017) with its rich culture and heritage; being the first industrialised city, home to the world's oldest train station and the birthplace of the world's first public library (RW).
Manchester's famous shopping centres, rich cultural history and enviable nightlife, the city attracts not only millions of visitors to the area, but thousands of students and young professionals to the city every year. The city also has a magnificent music culture, with many renowned festivals hosted in the area each year, including Parklife Festival and the Manchester International Festival. On the professional front, the city also hosts a number of major business events and conferences each year at Event City and other well-established venues. It's no surprise, therefore, that the city has seen business giants such as the BBC move their headquarters up to the area in the last few years.
With a wealth of investment and regeneration projects in the city, it's no surprise that capital gains in the area are also high compared to other northern cities. Both first-time and established investors have been able to see the potential in the city over the past few years, and the continued growth in the years to come. Greater Manchester has also started to attract a much bigger investment audience from overseas, particularly in China, the Middle East and from GCC investors. The later of these even recently voting the city the "best UK city for investments".
Being a northern city, Manchester has also attracted a number of investors looking for opportunities to expand their portfolio without shelling out a large fortune to invest in the capital. House prices in the area, while on the rise, are still very affordable. The lower cost of living also attracts generation rent to the city, looking for high-quality city centre apartments - something which Manchester has seen a surge in in the last few years.
The average house price in Manchester (Zoopla, 2017) is just £173,381 compared to £484,173 in central London, meaning that investors moving to the north have been able to expand their portfolios with multiple properties for the same price of just one property in the capital. Capital gains is one of the biggest factors attracting investors to the north-west (in particular Manchester) as the area boasts some of the best house price growth rates in the UK. Between July 2017 and July 2018, house prices in the area rose by 5.6%, and this growth is expected to continue to 2022 at least (up to 18.1%).
As well as great capital gains, the city also offers investors opportunities for high rental yields, with many of the city's developments offering net yields of up to 8% - and an average of 5,5% in the Greater Manchester area, exceeding the average of many UK cities. The city also has attractive supply vs demand statistics, with the demand for high-specification city centre apartments currently out-weighing the supply. Developers in the city have been quick on the uptake to meet this demand however, with a number of projects currently under construction or in planning. This high demand for these types of apartments has pushed rental growth in the city upwards greatly, with the average rent now 5.76% higher (on average) through the region than just a few years ago.
Interested in investing in Manchester? Get in touch with our sales team today on +44 (0)161 302 6733 to enquire about our current and upcoming projects in the city.