10 reasons to invest in property in Manchester.
Manchester’s property market is booming currently and here are 10 reasons why
More and more investors are choosing Manchester as the destination for their next property investment, an increasing population, a booming local economy, and rising number of business’s entering Manchester are just a few reasons why. This article nicely summarises 10 of the main reasons why the Manchester property market is heating up.
Here are our top 10 reasons to invest into Manchester buoyant residential property market:
- Property Price Growth. House prices in Manchester last year grew 8.8% more so than any other part of the UK. A strong local economy, population growth, and an influx of businesses to Manchester means property prices are likely to continue this upward trend for the foreseeable future
- A Local Economy that is Booming. Manchester’s economy has almost doubled in size in the last 20 years, while its population is up 26 percent. The 6.6 percent average annual growth rate is faster than the UK’s 5.1 per cent. In 2017, the economy in Manchester is expected to grow by £634m with employment levels expected to rise by 22,000 (UK Powerhouse Report). By the end of 2017, the value of Manchester’s economy is estimated to be £58.9bn.
- Business. Manchester has quickly become a hub for business, and over the next five years, the city is said to rival leading cities such as Tokyo, Paris, and Berlin. Not only are many companies choosing to relocate here in favour of a cheaper cost of labour and less expensive cost of living but the city is also a hotbed for young and ambitious creative talent starting up their businesses. All of this is destined to improve Manchester’s economy further and create further demand on the city’s property supply
- Undersupply of Property. For all the reasons above more and more people are arriving at Manchester’s doorsteps creating a surge in population. The city already suffers from a short supply of new properties coming on to the market. In 2015, such was the extent of the undersupply that the population was growing at 15 times the rate at which new properties were being built. With population increasing by the day, it’s no wonder most experts are predicting prices to rise in Manchester for some time to come.
- A Well Connected City. Manchester is cited as being one of the most well-connected cities in the UK. Not only is the city extremely well located for road transport, but the city also is easily reachable by train and by air.
- The Northern Powerhouse. Manchester and other Northern cities are set to benefit hugely from a huge investment from the government. The city is undergoing an immense transformation with investment into transport, health facilities as well as technology.
- Strong Rental Yields. Manchester and the Manchester region a short time ago recorded the highest rental yields anywhere in the UK. The rental market in Manchester is growing on a daily basis, and yields in the city are currently coming out at between 6.5-7%. In contrast to 3-4% being generated in London, it’s no wonder more, and more investors are switching from London to Manchester
- Universities. Manchester has a growing student population of circa 100,000 students across 6 universities. The city continues to be fertile ground for students, and a growing number of international students are arriving in Manchester to further their academic careers. A substantial proportion of these students stay on in Manchester to begin their working careers which created further demand for property in the City
- A Roadmap to Success. Although the city of Manchester has transformed dramatically in recent times, the city has a defined roadmap to continue its rise in global notoriety. The city is scheduled to rise even further with planned investment, and all of this will have a positive effect on property prices.
- Property prices still below their peak. Prices in Manchester are still considerably below their peak just before the financial crisis in 2008. In some parts of the North-West property prices are still 30-40% below their peak which means there is certainly more room for growth.