Manchester offers a thriving economy and diverse job opportunities across various sectors, making it an attractive destination for property investment.
The city has a strong rental market driven by population growth, high housing demand, and a shortage of supply, providing opportunities for steady rental income and high rental yields.
Manchester has demonstrated exceptional capital growth potential, outperforming many other regions in the UK, with a substantial increase in property values over the past twenty years.
Key reasons for Manchester property investment include strong government support and investment initiatives, such as the Northern Powerhouse project, excellent existing transport links, as well as diversification and risk mitigation opportunities.
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Why is Manchester a Good Place To Invest?
1. Thriving Economy and Job Opportunities
One of the primary factors that makes Manchester an attractive destination for property investment is its thriving economy.
With a rich industrial heritage, Manchester has successfully transformed itself into a vibrant hub of commerce and innovation. The city boasts a diverse range of industries, including finance, technology, healthcare, and creative sectors that contributes to a stable and sustainable environment for investment.
2. Student Hub
Manchester is home to a number of leading universities, attracting a highly skilled and educated workforce as well as a large student population.
The presence of renowned educational institutions, such as the University of Manchester and Manchester Metropolitan University, ensures a constant supply of talented graduates, making it an ideal location for businesses seeking a skilled workforce.
Whilst studying, attendees of the universities often require accommodation which further supports investors. With an estimated 120,667 students in the city, that’s a lot of people that require housing!
3. Strong Rental Market
Investment properties in Manchester offer excellent opportunities for generating rental income. The city’s thriving rental market is driven by a combination of factors, including a growing population, a high demand for quality housing, and a shortage of supply.
With a significant influx of young professionals and students in recent years, as well as around 1.15 million tourists visiting annually, demand for rental properties continues to soar.
As a property investor in Manchester, you can benefit from a steady stream of rental income and the potential for high rental yields. Take a look at the average rental yields and property prices for Manchester in comparison to some of the other best cities in the UK to invest in:
Rental Yield (Average)
Average Property Price
4. Capital Growth Potential
When it comes to long-term capital growth, this city has proven to be an exceptional performer. House prices are far from falling in Manchester, and the city has consistently experienced above-average house price growth, outperforming many other regions in the UK.
Recent data shows there has been an impressive increase in property values over the past twenty years. Prices have increased by a massive 331% over 20 years, which is the second highest growth in the country, demonstrating that it is a good time to buy a house in Manchester.
Several factors contribute to this sustained growth with the main one being the city’s continuous regeneration projects such as development of infrastructure in commercial and residential spaces enhancing desirability, not to mention the Northern Powerhouse and HS2 projects.
5. Cultural and Social Attractions
Manchester’s rich cultural heritage and vibrant social scene make it an appealing destination for residents and visitors alike. The city boasts a thriving arts and music scene, playing host to the renowned Manchester International Festival, as well as being home to world-class museums, galleries, and iconic music venues.
Manchester also offers a diverse range of restaurants, bars, and shopping destinations as well as excellent leisure facilities across the city that add further value to the Manchester property market. And who can forget the fact that the city is home to two of the world’s biggest football clubs!
6. Strong Government Support and Investment
Manchester’s property market has also been bolstered by strong government support and investment initiatives. The Northern Powerhouse project, launched by the government, aims to promote economic growth and investment in the North of England with Manchester being a key beneficiary of the program, receiving funding for infrastructure development and business support.
The government’s commitment to supporting Manchester’s growth further reinforces its position as a prime investment location, with the potential for higher returns and sustained growth.
7. Excellent Connectivity and Transport Links
Manchester’s strategic location and excellent connectivity make it a highly sought-after destination for property investment. Northern Powerhouse aside, the city benefits from a well-developed transport infrastructure, including an international airport.
This connectivity not only facilitates travel but also attracts international businesses and investors, contributing to the city’s economic growth and property market stability.
Manchester’s efficient public transportation system, includes a comprehensive network of buses, trams, and trains to ensure easy commuting all around the city and its suburbs. The city is also close to major motorways and has great rail links connecting it to other key cities in the UK, including London.
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What are the Best Areas of Manchester to Invest?
1. City Centre
Manchester’s city centre is a prime location for property investment. It offers a vibrant urban lifestyle with a wide range of amenities, including shopping centres and restaurants which attract young professionals and students alike.
2. Salford Quays
Located near the city centre, Salford Quays has undergone significant regeneration in recent years with the area offering modern residential developments, waterfront views, excellent transport links and a close proximity to major employment centres.
Known for its creative vibe and independent businesses, the Northern Quarter has become a trendy area in Manchester. It particularly appeals to young professionals seeking a vibrant and unique living environment and has recently been redeveloped.
Whilst it is always important to conduct research into an area before making an investment, there are a few areas that have historically been associated with challenges such as Moss Side, Cheetham Hill, Moston, and Harpurhey, which are known to have encountered issues such as higher crime rates and deprivation in places.
Manchester property investment offers a whole host of opportunities for both seasoned investors and first-time buyers thanks to a thriving economy, strong rental market, and the potential for long term growth.
Areas, such as Salford Quays, have benefitted from the ongoing redevelopment of the city and the government support for regeneration with funding and major transport projects underway, making them ideal locations for investment.
With the right strategy and a comprehensive understanding of the Manchester property market, you can unlock the potential for lucrative returns and secure a bright future for your investment portfolio.