Why is Manchester the Place to Invest?

Reason 1 – A High-Performing Property Market

The Manchester property market is booming, displaying signs of even further growth on a global scale.

Just one look at the investment opportunities Manchester offers, and the appeal of buy-to-let investment in this city becomes even more apparent.

Affordable yet growing property prices and high housing market demand have all put the North West’s top city in the spotlight compared to other cities for UK property investments.

Manchester is your go-to city when it comes to buying investments within a top UK housing market.

Affordable Properties

When compared to other UK areas, particularly London, Manchester property prices are highly affordable.

While not as affordable as their Northern neighbour, Liverpool, which has an average property price of £164,550, Manchester has average house prices of just £203,835, according to the latest Land Registry House Price Index report.

London’s average is more than double this figure, standing at £525,893.

Investors who want to own a lucrative property without spending above their budget will often invest in Manchester due to the affordable prices and fantastic opportunities on offer.

Growing House Prices

One of the most significant pieces of Manchester investment news lies with property price growth.

From March 2022 to January 2023, capital appreciation in Manchester had grown by 5.72% – almost double the national average and 12 times higher than London, according to the UK House Price Index.

Manchester property market forecast predictions show that further growth of 20.2% is predicted for the North West by 2028, making now the perfect time to get started with a new Manchester investment.

Property Market Resilience

The UK has faced a lot of uncertainty over recent years, but the Manchester economy and market remain as resilient as ever.

While cities in the South, like London, continue to struggle following the EU referendum result back in 2016, Manchester’s property market has overcome these difficult times.

Even during the Covid-19 pandemic, when many predicted house prices in the UK to plummet, Manchester’s property market has continued to thrive.

In 2021, a year the pandemic began, Manchester house prices had increased by over 12%.

A lot of factors led to these growing property prices. Of course, the stamp duty tax holiday played a big part in this growth, with a lot of people opting to invest in Manchester during this time to benefit from tax savings.

Manchester boasts a famously high level of demand for rental properties, partly down to the huge business scene within the city.

There are business opportunities in every sector, in large and small businesses, creating plenty of appeal for young professionals hoping to make their mark on the city.

Sectors like manufacturing, business and finance, life science and healthcare, and digital and creative within the city are worth over £4 billion annually.

Manchester’s employment growth has increased by 84% between 2002 to 2015, with no signs of slowing down over the coming years.

This reinforces Manchester’s status as a good investment location for those targeting young professional tenants.

MediaCityUK

MediaCityUK, located in Salford, is home to a whole host of major companies, making it one of the best places to invest in Manchester residential developments.

Some of the big names based in MediaCityUK include BBC and ITV, reinforcing the area’s influence as a hub for media and tech-based careers.

Property investment companies in Manchester are noticing the greater demand for properties in and around this Salford Quays area, fuelled by young professionals seeking quality rental properties close to their workplace.

Property investment opportunities in Manchester include Merchant’s Wharf apartments near MediaCityUK, which boast 6.5% rental returns.

A Hub For Fast Fashion

Some of the biggest names in the fast fashion industry reside in Manchester.

Businesses like Boohoo, Misguided, Pretty Little Thing and Misspap are all based in Manchester. This has led to the city developing a reputation as a hotspot for fashion industry professionals.

Young professionals and graduates who want to land careers such as fashion designers or buyers no longer need to head to London for their dream role, with many options available in this Northern city.

This has attracted a broad demographic of young professionals to the city and increased rental demand even further.

Along with the herds of young professionals that regularly flock to Manchester seeking residential properties, the city is also a significant student hotspot.

Manchester is home to several prominent universities, such as the University of Manchester, the UK’s largest single-site university campus.

The constant demand for new student developments and living spaces in the UK’s student market is driving the perpetual motion of Manchester’s buy to let economy.

The demand far exceeds the current supply, and those who choose investments in Manchester buy to let will be met with demand from a range of potential tenants, including students.

Student Accommodation Investment

So should you consider a student property investment in Manchester?

With such high student demand in the Manchester property market, investors who purchase a student buy to let property won’t be short of tenants.

However, that’s not the only reason why student accommodation makes such an attractive investment option when finding a property in Manchester to invest in.

Student properties are typically cheaper than residential property but with just as high rental yields.

This is what makes student accommodation one of the best options for investment in the UK.

Yields are exceptionally high in more high-end student apartments. This is because students are happy to pay greater amounts for accommodation that meets their standards.

If you’re looking to make a lucrative investment in Manchester that will provide you with high returns for a long time, student property is definitely worth considering.

The best places to invest in Manchester student accommodation include Manchester city centre, Salford Quays, Fairfield, and Didsbury.