City centre living has never been more popular in Manchester. From a situation two decades ago where almost no one lived in the city centre, tens of thousands of people now call it home – and more are arriving every year as the population continues to grow.

However, there is already a serious shortage of available apartments in the city centre, especially in the luxury market which is most attractive to young professionals and overseas students. This lack of supply is pushing prices up and making larger apartments less affordable.

Recent research from urbanbubble shows that rents in Manchester climbed to an all-time high over the course of 2021, with the average property seeing 9.1% rental growth over that year. Rents for 2-bed apartments rose by 14.8% over that time period, more than any other property type in Manchester and reason enough for many to downsize where they could.

The obvious solution – 1-bed apartments – does not offer much respite for people on a smaller budget. The same research shows that the average rent for this type of apartment grew by 4.4% in the final quarter of 2021 alone.

This situation leaves many young professionals and students searching for other options which allow them to stay in the city centre while maintaining a more affordable lifestyle. An increasingly popular solution to this problem is the modern studio apartment.

Unlike old fashioned studio apartments which are generally of low quality, new build studios are a different prospect entirely. Spacious, carefully considered and of superior build quality, new studio apartments can offer all the benefits of luxury city centre living at a more affordable price, making them the perfect option for many people.

They are also an increasingly good cultural fit as living alone is no longer seen as unusual or negative. Indeed, having your own space and a greater sense of privacy is often preferred, particularly after the Covid-19 pandemic and the rise in home working. Likewise, the freedom offered by an open-plan living space is proving to be increasingly popular with tenants.

Studio apartments also offer a range of day-to-day advantages on top of the affordability benefits and increased privacy. The smaller floor plan makes it easier for tenants to maintain, and they cost less to heat in the winter, further appealing to those on a smaller budget.

Furthermore, they are often located in buildings with a host of amenities which make modern apartment living even more enticing. Features such as gymnasiums and bicycle storage increase the versatility of these apartments and add an extra dimension to modern, city-centre living.

Studio apartments are affordable, popular with potential tenants and can add a strong income stream to any portfolio. For investors, purchasing a modern studio can give you access to the lucrative city centre markets and a distinct, growing tenant pool at the same time.

Returning to the urbanbubble report demonstrates the benefits of investing in studio apartments in Manchester. While the data shows that the average rent of a studio apartment in Manchester city centre is approximately £100 lower than for a 1-bed, the lower entry price of a studio means that you can potentially earn a higher rental yield than if you were to invest in larger apartments.

Rents for studios are also growing strongly – 6.6% over 2021, and 2.9% over the last quarter of that year. This is healthy growth that lowers the risk of pricing out potential tenants. There is a gap in the market for studio apartments in Manchester that is waiting for investors to fill it.

Our latest investment opportunity in the city – X1 Cheltenham Place – is the perfect example of all that studio apartments can offer.

These luxury studio apartments are perfect for professionals, graduates and students, and come with all the amenities residents need to make life easy, including a gym, laundry facilities, bike storage and a stunning roof garden.

Furthermore, it is located approximately five minutes walk from Salford Crescent station – one of the most popular and desirable locations in the city which provides direct access to the whole region and beyond.

Similarly, Manchester city centre is only a short distance away by foot or public transport, including the city’s main business zones such as Spinningfields, Victoria Station and Deansgate. Likewise, Manchester’s vibrant social scene is only ever a short distance away – making X1 Cheltenham Place the perfect venue for all aspects of life.

X1 Cheltenham Place is eagerly awaited by investors and residents alike, bringing hundreds of luxury studio apartments to this thriving city.

Key highlights

• Luxury studio apartments from £119,950
• 7% net rental return assured for 5 years
• 999 years lease
• Earn an assured £41,982 over 5 years
• Excellent location prime for rentals

Want to find out more about investing in Manchester studio apartments at X1 Cheltenham Place? Get in touch with our team today by clicking here.