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Where To Invest In Manchester Property

April 11, 2024

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Key Highlights

UK
  • Manchester has recently established itself as the UK's second city, in thanks to a booming economy and plenty of industries and universities.

  • With thousands flocking to the city each year, this has given Manchester's property market lots of potential.

The northern UK city of Manchester is currently enjoying something of a renaissance. It has become one of the top destinations to live outside of London, with thousands of Londoners leaving for Manchester in search of cheaper housing, cheaper rent, and new opportunities. 

 

Quickly establishing itself as the UK’s second capital, this hardworking northwest city has been a leading figure in the UK’s industrial and innovation sectors for decades, with plenty of businesses making their bases here. It is currently home to thousands of businesses, predominantly in the tech, health, and finance sectors. This business hub has made the city a top destination for young professionals, and the world-class universities have brought thousands of students each year to live and study.

 

Why Invest In Manchester Property

 

Untapped Markets

 

Manchester has been enjoying plenty of regeneration projects and investment opportunities for a while, but there are still plenty of areas with untapped potential. Regeneration projects are taking place all over the city and surrounding areas, with new windows of opportunity popping up in Salford, Manchester North, and the wider area. Potential investors buying property in Manchester have a range of options to choose from, being able to find opportunities to suit almost any business goal.

 

Strong Yields

 

The city and surrounding areas have shown to have strong and stable rental yields, with the majority of properties ranging from 5% to 8% in yields. House price growth has also been rising consistently and steadily, ensuring that your chosen properties will have strong capital appreciation in the years to come.

 

Currently, predictions for the Manchester property market are positive. According to Savills, the city is slated to see house price growth of 24.3% by 2026. This is an exceedingly strong estimate and outstrips the UK’s average house price growth.

 

Growing Population

 

As mentioned above, Manchester has been seeing a rise in popularity which has been reflected in its steadily growing population. From 2011 to 2021, the northern capital has seen an incredible rise of 7.3% in population, with this figure only set to exponentially rise further. The population is currently at 560,000. The population density for Manchester is 12,210 people living per square mile, which translates to 4,716 people per square kilometre.

 

So, why are so many people moving to Manchester?

 

The key lies in the city’s culture and its approach to business and industrialisation. A key figure in the Industrial Revolution, Manchester has been at the forefront of technology, industry, and education for hundreds of years.

 

This still rings true today, with thousands of businesses creating bases in the city. It is home to plenty of startups and big household names, including companies such as The Hut Group, United Utilities, Adidas, and more. The mix of big names and innovative startups has led to a rise in young professionals moving to the city to find new opportunities and high-paying jobs.

 

Another factor in the growing population also lends itself to students. With an average of roughly 120,000 students in the city per year, Manchester has become a top student destination. The city has four major universities and countless colleges and trade schools. What is interesting to note is a lot of students choose to stay in the city, with over half of Manchester’s graduates opting to stay to look for work – an incredible figure of 51% of graduates.

 

It’s easy to see why so many choose to move and stay. Beyond academic and work opportunities, Manchester is renowned for its culture, history, and exciting nightlife. It is home to two major football clubs and countless arts and music venues, ensuring that there is something to do or see every single night. This is also further supported by the excellent transport links the city has, connecting it with the rest of the UK and beyond.

 

Where To Invest In Manchester Property

 

Red Bank Manchester

 

Some of the best places to invest in Manchester property lie within the Manchester city centre itself. The city has seen some exciting regeneration plans take place, with this drive and innovation not slowing down.

 

One such project is The Red Bank Regeneration Project, a venture looking to renovate and revitalise Manchester’s Victoria North, formerly known as the Northern Gateway. Part of this is Manchester’s Red Bank neighbourhood, which is currently undergoing transformation. The goal of the project is to create a sustainable and vibrant place to live in Manchester’s northern green belt, along the River Irk Valley. 

 

Manchester’s Red Bank neighbourhood will see the creation of 15,000 new homes to meet the ever-present and growing demand for new living spaces within the city. The development will also include the creation of a sustainable neighbourhood, with strong transport links, green public spaces, and community facilities.

 

The space is already set to become the next investment hotspot in the city, bringing in thousands of investment opportunities and new locations for enterprises, public spaces, educational bodies, hospitality, and retail.

 

Interested to hear more about Red Bank? Find out more here.

 

Spinningfields

 

The Spinningfields project was, at the time, the most ambitious regeneration project the city had ever seen. Now, this sleek and curated selection of residential and commercial buildings has formed Manchester’s iconic skyline. While it is partly completed, it has already brought significant returns into the city, revitalising industries and bringing more gains to the economy.

 

This modern and fast-paced neighbourhood has brought untold opportunities to the city – especially for investors. The average property price is admittedly a lot higher than other areas, but this still leaves a lot of investment potential. Investors can purchase properties here, knowing that tenant demand and quality will be high.

Check out our Spinningfields properties here.

 

Salford

Salford is currently undergoing huge transformations, with the neighbourhood looking almost unrecognisable in the past couple of years. Often overlooked compared to other Manchester neighbourhoods and locations, Salford still has a lot of untapped potential. 

 

It is still more affordable than other parts of Manchester, with lower house prices and cheaper rents. This has drawn more people to live there in recent years, as it is still near the city centre. However, rents and house prices are still increasing, ensuring that property investors can still enjoy high yields and capital growth, ensuring strong capital growth.

 

One of the major reasons Salford has seen a rise in tenant demand is because it is also home to MediaCityUK – a media and technology hub with leading industry figures such as Talk Talk, ITV, and the BBC having bases there. It has become a hotspot for technology, media, gaming, and other industries. Plenty of working professionals have chosen to live in Salford to be closer to work and cut their commute time. These people are high quality renters, offering strong rental income to potential investors.

 

Greengate

 

Part of Salford that is undergoing major regeneration is Greengate. The neighbourhood is part of the city centre and is close to Media City. It presents an affordable and attractive option for investors, as Greengate house prices are much cheaper than other parts of Manchester and indeed in the UK. Rightmove has shown that within the past year, Greengate prices have soared by 8% – highlighting positive growth.

 

For more on Greengate and our projects happening there, check out more here.

 

Fallowfield

 

Nestled in the south of the city centre, the Fallowfield neighbourhood has become synonymous with Manchester’s huge student population. This student population presents an attractive opportunity for investors; there were approximately 120,670 students enrolled at Greater Manchester universities during the 2021 – 2022 academic year. 

 

Fallowfield is predominantly composed of Victorian terraced properties that are often purchased as buy-to-let properties and reverted into houses of multiple occupation (HMOs), with the intent of renting it out to students. The area is teeming with supermarkets, shops, bars, clubs, and more, with strong transport links to the city centre and universities.

 

Summary

 

At North Property Group, we pride ourselves on being experts in property investment. We are skilled in locating the best property investment opportunities and deals in Manchester and the rest of the UK. 

 

Our team has an in-depth and extensive knowledge of Manchester and the UK’s real estate market and can provide professional advice to help you find the best investment to suit your business goals. Book a free consultation with us today to unlock your investment potential.

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Explore our property in Manchester

The Bailey

From £249,950

Yield: 13.5%
   In Construction
   Est. Q4 2024
   Lease Length: 250 Years

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