Manchester: A hub of growth and innovation

June 23, 2023

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Manchester
  • Manchester has solidified its position as a leading destination for development and investment, ranking among the top five cities for growth across multiple sectors, according to CBRE's latest report.

  • The city's impressive performance is attributed to its projected population growth, with a nearly 6% increase expected in the next decade.

  • The city is set to undergo a transformative project called ID Manchester, which is valued at £1.7 billion.

Manchester has solidified its position as a leading destination for development and investment, ranking among the top five cities for growth across multiple sectors, according to CBRE’s latest report, “Which City? Which Sector?” The comprehensive study evaluated 50 major regional towns and cities in the UK, excluding London, considering factors such as GDP, employment growth, demographic trends, property supply pipeline, housing affordability, and local universities.

Manchester emerged as an extremely promising city for investment, securing top positions in CBRE’s growth city rankings for office spaces, urban logistics, student accommodation, self-storage, single-family housing, and multi-family housing. The city’s impressive performance is attributed to its projected population growth, with a nearly 6% increase expected in the next decade. This population growth is anticipated to drive a significant rise in consumer spending, predicted to increase by 24.7% during the same period.

While Manchester didn’t claim the top spot in all categories, it consistently ranked high in the study. In the life sciences sector, it secured the third position, following Oxford (second) and Cambridge (first). Manchester’s commitment to advancing scientific research is evident through its plan to introduce 2 million square feet of laboratory space by the end of the decade.

Additionally, Manchester ranked second in the senior living category, with a projected increase in the number of people aged 65 and older. In terms of retail, it secured the third position, trailing behind Birmingham and Bristol. The city also showed promise in the leisure, food, and beverage sector, ranking fifth in growth potential, as well as in the affordable housing category. However, it performed less favorably in the hotels sector, ranking seventh in terms of growth potential.

John Ogden, managing director of CBRE North, praised Manchester’s outstanding performance across key sectors, highlighting the city’s resilient property market. He emphasized the importance of such research in providing valuable insights for CBRE’s clients. Jennet Siebrits, UK head of research at CBRE, highlighted Manchester’s unique blend of economic, cultural, and natural resources, which contribute to its success across different real estate sectors. With its diverse industry base, thriving retail, tourism, and hospitality sectors, robust demographic and economic fundamentals, and a large student population, Manchester is poised for continued investment and growth in the coming years.

In addition to Manchester’s impressive achievements, the city is set to undergo a transformative project called ID Manchester. Valued at £1.7 billion, this initiative aims to revitalize the University of Manchester’s north campus, replacing existing structures with 4 million square feet of space dedicated to education, retail, and residential properties.

Within this expansive area, 2 million square feet will be allocated for commercial purposes, and 1,500 new homes will be constructed. Pending approval from the Manchester City Council, the project is expected to begin consultations on June 28. It is projected to generate over 10,000 employment opportunities, according to the University, Bruntwood SciTech, and Legal&General, who are jointly overseeing the initiative.

Credit: MEN

The plans for ID Manchester also prioritize the restoration of significant heritage assets within the site, including the Sackville Street and Renold buildings, along with enhancing green spaces and urban biodiversity. Over a period of 15 years, this ambitious development aims to sustain and expand Manchester’s reputation as a global hub for education, innovation, and research.

ID Manchester represents a commitment to inclusive innovation, sustainable growth, and positive social impact. It aspires to establish Manchester as a leading force in applied innovation, fostering new skills, ideas, and economic growth at both local and national levels. The University of Manchester, in alignment with the United Nations Sustainable Development Goals, sees ID Manchester as an opportunity to commercialize research and contribute to societal advancement.

These remarkable developments in Manchester showcase the city’s unwavering potential for growth and innovation. With its thriving sectors and transformative projects like ID Manchester, Manchester continues to solidify its position as a global leader in driving progress, prosperity, and inclusive economic opportunities.

To learn about the property investment opportunities above, or to find out more about how property investment works, get in touch with the experts at North Property Group today.

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