Over recent years, Manchester has had an incredible property boom which has transformed the city and its prospects. With high rental yields, rising property prices and increased investment in the region, Manchester seems to have found a winning combination for its property market. However, unlike many other cities where a boom has been followed by a period of decline, Manchester’s property boom shows no signs of tailing off. The conditions which led to such a great climate for the property market are as apparent now as they were when the boom started. There are several factors that are adding to the confidence in Manchester’s property boom, and the sustained growth witnessed there is encouraging to property investors and others.
One reason for such confidence in Manchester’s property market is its growing population. With more people choosing to move to Manchester every year, there is greater demand than ever before for Manchester property. Between 2002 and 2015, the population of Manchester’s city centre grew by a remarkable 149%, with job growth of 84%. These figures lead to Manchester coming top in the Centre for Cities table of jobs and population growth, with the population of Manchester growing more than six times faster than that of central London.
Andrew Carter, who is the chief executive of Centre for Cities said:
“Thirty years ago the centres of places like Manchester and Birmingham were run-down and struggling, but since then they have undergone a dramatic transformation and have become increasingly attractive locations for people to live and work in.
“This urban renaissance has brought opportunities for people living across these cities and their surrounding areas, and it’s vital that it continues,”
Manchester’s growing population is one of the main catalysts behind the increasing demand for homes, which presents an unrivalled opportunity for property investors. Confidence is also high due to Manchester’s high property transaction rate and strong capital appreciation. Sales of residential property in Manchester have risen by an incredible 56% year on year in 2018. This rise in sales has been fundamental in fuelling the demand for more property and the city’s property boom.
Property prices in Manchester have been rising but they are still far more affordable than in the south of England. This has been leading many young professionals to consider making the move northwards and they often rent property before they buy there. Manchester property is also a great investment, with striking capital appreciation. Recent research from JLL predicted that house prices in Manchester city centre would rise by 6.5% in 2018, and by 2022, they should see an impressive 22.8% growth. This is perfect for property investors looking for long term gains.
Property investment specialists like RW Invest have also seen increasing interest in Manchester property from overseas investors, with the city’s rental yields and capital appreciation bringing attention from around the world. Savvy investors have been reaping the rewards of Manchester’s property boom, with rental yields of over 10% in some lucrative Manchester postcodes. The levels of foreign direct investment in Leeds has been rising steadily, boosting the city’s economy further. All of these factors are contributing to sustained growth and a positive outlook for Manchester’s booming property market.