Having affirmed itself as the UK’s second city, Manchester is now one of the most promising areas for property investment in the country and looks set to remain so for some time.
Forecasts of major rental growth and significant increases in the price of housing over the next five years, along with a growing, skilled workforce keen to remain in the city, are just some of the factors that will compel you to invest in Manchester property in 2023.
Why Invest in Manchester Property
The economic powerhouse of the North West, Manchester has become a diverse, innovative and leading global commercial hub, producing some of the most impressive property investment returns anywhere in the UK. Here are some of the key factors that make Manchester the place to invest in 2023.
The Market
Low property prices and increasingly high rental values are key to Manchester’s sustained success as an area of lucrative investment. The average property price in Manchester is currently sitting at £221,485, around £36,500 lower than the UK average and a massive £445,000 lower than the average London property.
According to industry experts JLL, the value of property in the city is forecast to increase further in the coming years, with the average price set to rise by at least 25.8% by 2026 (an average of 4.7% per year), making now the time to invest in Manchester property.
In addition, property in Manchester has increased by 36.41% over the last five years with an average growth rate that is higher than all other UK cities. This indicates a major opportunity for capital appreciation in Manchester in the near future. The exciting thing for investors is that these trends are set to continue over the next five years.
Rental Growth
Significant sustained growth in the rental sector both across the city and indeed the entire North West is yet another reason to invest in Manchester property.
Between now and 2026, rental growth in Manchester is set to increase by upwards of 15.4%. At present, the average rental income in Manchester per month is sitting at around £1,400, which is £350 higher than the UK average. Despite this, overall property prices in Manchester remain significantly lower than the average for the rest of the country.
Sizeable rental returns like these, along with low prices, have been generating rental yields of over 9%, which stand above those in Liverpool, Birmingham, Edinburgh, Leeds and London.
Over the next five years, rental prices in Manchester are set to rise by 18.2% compared to 15.9% in London, making the North West the area to watch in terms of lucrative investment opportunities.
Additionally, this means that property investors in Manchester could be looking at an average rental price of £1,600 per month by 2026, positioning buy-to-let property in the city at the head of the pack as a key area of investment.
A Growing Population
A major driver of the steady increase in demand for high-end rental properties in Manchester is the growing number of highly educated young professionals deciding to live and work in the city.
Around 50% of students who graduate from one of the city’s universities choose to remain and work there, showing just how attractive Manchester is to a population keen to rent in high-quality residential accommodation. According to the local council, the population will grow by 70,000 people by 2030 to around 625,000, meaning there will be no shortage in demand for buy-to-let properties in Manchester anytime soon.
Supply and Demand
As an investor, an essential factor to consider when thinking about whether you should or shouldn't invest in Manchester property is supply and demand. According to a recent report from Zoopla, the ratio between supply and demand in the city is 1:5. This creates a highly promising and frankly solid opportunity for investors as it signifies much fewer void periods while significantly increasing capital growth.
A Global Economic Hub
A modern, highly innovative cosmopolitan city with a globally competitive economy, Manchester is the economic heartbeat of the North West with a growth in business of 41% over the last five years.
The city centre economy alone is currently valued at over £6 billion and serves as the key economic driving force behind a regional economy worth more than £62 billion a year.
Thanks largely to Manchester’s growing, highly skilled workforce, major multinational companies like Microsoft, Amazon, Google and BT all have an established presence in the city, making it a global hub for some of the world’s leading tech companies.
A recent Tech Nation report highlights that investment into Manchester’s technology sector increased by 277% in just one year - making it by far the fastest growing tech cluster in Europe.
Exciting Investment Opportunity
Embankment Exchange
So if you’re wondering, ‘should I invest in Manchester property?’, or are even unsure of where to look, the new Embankment Exchange development could be an excellent place to start.
Of the range of premium property developments that attracts the diverse, young professional workforce now characteristic of the city, the Embankment Exchange appears one of the most exciting and potentially profitable opportunities to invest in property in Manchester.
This set of riverside skyscrapers offer both luxury and affordability, with top of the range apartments available from just £225,950 and projected rental returns of an impressive 6%.
Enquire today to invest in one of these premium riverside apartments.
