Manchester is thriving so much, property investors can’t ignore the city any longer. It’s become a top property investment location for both domestic and overseas investors. Across the board, many buy-to-let investors are seeing better value for money in Manchester as the city’s property market is booming.
There are a number of reasons causing this with strong growth projected for the coming years. Because of that, this northern world-class city is expected to remain a top place to live, work and invest in.
Increasing development and investment
Manchester’s skyline is rapidly changing as more developments and investment are completed. A number of cranes are dominating the skyline showing even more projects are being brought forward.
Manchester Crane Survey by Deloitte revealed 35 residential schemes in total were completed in 2020. Despite the challenging year due to the COVID-19 pandemic, this is the highest delivery of residential properties since Deloitte’s records began in 2002. Additionally, 24 new starts were recorded, which is one more than from in 2019.
According to UrbInfo’s 2021 Tall Buildings Report, the number of skyscrapers in Manchester is set to more than double from 49 to 133. In the last three years, 37 projects alone have been announced, which further illustrates the city’s current property boom.
Growing economy
Manchester has the largest city region economy outside of London. The city is at the heart of the digital revolution, which is driving the economy. Many large employers are shifting jobs to regional cities like Manchester. They can attract graduates and young professionals by offering a better quality of life.
With the current London exodus, an increasing number of businesses and people are moving out of the capital to the north. And many are setting their sights on Manchester. With a strong and diverse economy, the Northern Powerhouse city has a lot to offer for both people and businesses.
Last year, Manchester was named a leading global hotspot for start-ups. The city was also named the fastest growing city for tech in Europe. This further shows the city is on par with some of the world’s leading cities.
Strong housing and rental demand
The growing economy and increasing development and investment is driving growth and demand in the city’s property market. In particular, Manchester is outperforming most London boroughs in terms of rental demand and yields.
The first quarter of this year saw a 34% rise in the number of properties being rented in Manchester compared to the same period in 2018 and 2019, according to the urbanbubble Research and Insights Q1 2021 Quarterly Report.
Certain areas of the buzzing city have even seen rents increase by up to 24% in the past five years. This has also led investors in Manchester to earn an average of 5-6% rental yield. This is substantially higher than the average yield in London at 2-4%.
House price growth
While house prices have been on the rise in Manchester, there have been no signs of this slowing down. The latest House Price Index from Zoopla revealed house prices in the city have increased by 7.2% annually.
With demand for property in Manchester expected to rise further, the city is slated to have strong capital gains prospects in the years to come. Savills has even forecast a bright future for the wider region’s property market.
In the five years to 2025, the national estate agency predicts house prices will increase by 28.8% in the north-west of England. This strong house price growth is expected to hit Manchester, the largest city in the region.
The property boom
With the property boom in Manchester, it’s an especially exciting time to buy property and invest in Manchester. There are also numerous benefits coming from the property boom, including exciting regeneration projects, increasing employment prospects and a fast growing local economy.
To further keep up with the strong demand, a number of exciting high-quality property developments are being brought forward in the thriving city. This will help keep up with the increasing demand for additional housing.
Are you looking for a buy-to-let property investment in the booming city of Manchester? Check out Salboy’s latest property developments. For more information, send us a message or give us a call on +44(0) 161 884 3183.
