Manchester City once again won the Premier League for a second year in a row and has a chance to add the Champions League trophy to cap its impressive season. Regardless of if you love or loathe the Citizens, it’s impossible to deny the success they’ve had. At this point, you’re probably wondering what exactly this has to do with real estate.
Well, much like how Manchester City climbed to the top of the Premier League, the Manchester property market is arguably the best performing one in the UK. Thanks to fast rising property prices, a bullish rental market and strong peripherals, the city has become a bona fide hotspot among real estate investors.
Why Manchester property investment?
Manchester is delivering property investors the highest levels of price growth in the UK and it looks set to carry on into the future. Research from Cushman & Wakefield found that housing prices could rise by as much as 57 percent between 2018 and 2028 placing the city at the top of the UK residential price growth table.
But that is only half of the story. Rental yields in Manchester are among the highest in the UK. As of November 2018, average yields in Manchester were 69 percent higher than those in London. Looking long-term, Manchester property investors will continue to achieve a continual growth in their annual rental returns as the city’s rising population puts further pressure on the rental sector.
| Annual Rental Growth in Manchester | |
| 2019 | 3% |
| 2020 | 3% |
| 2021 | 3% |
| 2022 | 3.5% |
| 2023 | 3% |
| Total cumulative growth 2019-23 | 16.5% |
*Research from JLL
What’s driving the Manchester Property Market?
Perhaps the most exciting aspect of Manchester real estate investment is the what’s driving the market. To start with, Manchester is officially one of Europe’s fastest growing cities. The Manchester City Council is supporting an ambitious plan to create a world-class city by 2025 and is focusing on everything from education to infrastructure in order to accomplish its goal.
The business community has already taken note of this push and several multinational corporations, including Amazon and Hewlett Packard, relocated or opened satellite operations in Manchester. The local government estimates that 16,300 new jobs will be created in the city centre by 2021, the highest total in the UK.
Where there are jobs, people will follow and this has been the case in Manchester. The city has become especially attractive for Londoners looking to escape the capital’s soaring property prices and lack of employment opportunities. The Guardian reported that nearly 300,000 people are moving out of London each year with Manchester among this group’s most popular destinations.
What’s more, Manchester has a 69 percent graduate retention rate of its university students, meaning over 68,000 new graduate workers are added to the city’s economy each year. With graduates staying put, Manchester has built one of the biggest ‘Generation Y’ populations in the country. This group, aged 18-34, is a key demographic for Manchester’s rental market.
Where are the Manchester real estate opportunities?
Between 2018 and 2022, 11,000 new jobs in the Manchester city centre are forecast to be created, but only 4,000 new purpose-built rental homes are set for delivery during this time, according to Colliers International.
At the moment, 70,000 people now live in the Manchester city centre with the majority renting an apartment. Looking ahead, the Manchester City Council reported that most population growth is going to be concentrated in city centre and surrounding wards during the next six years creating a huge opportunity for property investors in this area.
At the moment, Manchester city centre apartments are getting up to 10 enquiries per property with The Manchester Evening news finding that some apartments tenanted within one hour. For real estate investors, finding new build developments in the city centre is key if they want to take advantage of the rental market.
Elizabeth Tower at Crown Street is currently one of the fastest selling projects in Manchester. Located at the gateway of the city, this iconic 52-storey tower will be one of the highest residential buildings in the UK once completed. The development features breathtaking facilities that will ensure it becomes one of the most in-demand residential addresses in Manchester.
The 52-storey tower is situated within walking distance of Manchester’s key economic hubs and vibrant leisure attractions with Deansgate, Manchester’s main high street, and Spinningfields, the city’s main financial district, both minutes away.
Select Property Group, the UK’s leading property investment specialists, is representing Elizabeth Tower at Crown Street. The firm offers an end-to-end approach to UK property investment that is unrivalled in the marketplace. With offices in Europe, the Middle East, Southeast Asia and China, the company’s talented worldwide investment teams offer a truly bespoke service, no matter where clients are.
Anyone who registers for more information regarding Elizabeth Tower at Crown Street today will be eligible to receive an exclusive GBP3000 discount. However, due to the strong Manchester property market and high interest in the development, units will only be available for a limited time. Select Property Group recommends interested investors to act quickly in order to secure a unit.