Why Invest in Manchester

Investing in Manchester property brings a host of advantages for both new and seasoned property investors. The city is renowned for offering high rental yields and strong capital growth, making it a hotspot for those seeking to maximise returns. Manchester’s thriving rental market is underpinned by a large student population, thanks in part to prestigious institutions like Manchester Metropolitan University, which consistently drives demand for quality rental properties.

The local economy is flourishing, with key sectors such as finance, technology, and media providing a wealth of job opportunities and supporting ongoing growth in the property market. Major infrastructure projects, including the expansion of Manchester Airport and the development of new transport links, are further enhancing the city’s connectivity and investment appeal. Ongoing regeneration initiatives continue to transform Manchester’s urban landscape, ensuring that the city remains at the forefront of the UK property market and offering investors the potential for both immediate rental income and long-term capital growth.

Manchester Property Market Overview

Manchester, which has carved its niche as a prime property investment hub in the UK, stands out for its strong property markets, rising house prices, high demand, and affordable prices, propelling its market performance to new heights.

Historical Prices

– Average home prices were around £75,000 in 2000

– Prices steadily increased to £165,000 by 2015

– Current average property price is approximately £225,000 as of 2024

Manchester’s average property prices remain below the UK and national averages, making it an attractive option for investors. Over the past two decades, house prices in Manchester have shown consistent growth, outpacing many other UK cities.

Price Forecast

– JLL projects Manchester home prices will rise 28.2% by 2027

– Other forecasts predict 4-5% annual price growth over the next five years

– By 2028, the average Manchester home could cost over £275,000

Projected rental growth is expected to further boost property values, enhancing the investment appeal of Manchester’s property market.

House Demand

– Manchester’s population has grown by over 25% since 2001, fueling housing needs

– High demand from young professionals, families, and investors

– Housing supply has failed to keep pace with demand

Rental Yields

– Manchester offers some of the highest rental yields in the UK

The average gross rental yield for Manchester is currently 5.5%

– Top yields of 6-8% possible for prime city centre properties

The current average rent in Manchester is higher than the national average, reflecting strong rental demand and supporting robust yields for investors.

Manchester’s thriving economy, relative affordability, and rental demand indicate continued high capital growth and cash flow prospects for property investors, with ongoing growth in property values and the importance of monitoring average house price trends for maximising returns.

Top Investment Areas in Manchester

1. City Centre: Manchester city centre, including Deansgate, Spinningfields, and Castlefield, offers prime city living for buy-to-let investors, with high returns, strong rental demand, and excellent Manchester buy-to-let opportunities.

2. Ancoats: Urban renewal attracting young professionals, high rental yields.

3. Didsbury: Affluent suburb, family-friendly, good schools, pricey but consistent demand.

4. Chorlton: Trendy, bohemian vibe, high prices and yields.

5. MediaCityUK: Booming Salford district, home to BBC and ITV, modern developments, offering strong rental demand for buy-to-let property.

Best Places to Live:

1. Altrincham is an affluent market town with high-end dining and shopping.

2. Worsley – Leafy village, excellent schools, low crime rates.

3. Prestwich – Suburban charm, vibrant social scene, good transport links.

4. Ramsbottom is a picturesque town with independent shops and cafes.

5. Hale – Exclusive area, multi-million-pound homes, sought-after location.

These areas feature a range of Manchester properties that present attractive Manchester investment opportunities, especially for buy-to-let investors seeking strong rental yields and long-term growth.

Neighbourhoods to Avoid:

1. Moss Side – High crime rates and poverty levels.

2. Cheetham Hill – Crime hotspot, rundown areas, and overcrowding issues.

3. Charlestown – Deprived neighbourhood, high unemployment, antisocial behaviour.

4. Miles Platting – Crime problems, low-quality housing stock.

5. Harpurhey – Social deprivation, high crime, poor amenities.

Industries and Business Activity

• Significant industries include digital/tech, manufacturing, life sciences, and creative/digital.

• MediaCityUK is a significant media hub housing BBC, ITV Granada, and has benefited from significant investment supporting urban regeneration and infrastructure improvements.

• Over 20 universities and higher education institutions in Greater Manchester

• Robust startup ecosystem with the largest cluster outside London

• Home to major corporations like The Co-operative Group, Kellogg’s, Siemens

Manchester plays a central role in the Northern Powerhouse initiative, with significant investment from local government and major developers driving regional economic regeneration, infrastructure upgrades, and large-scale projects that boost property values and attract further investor interest.

Key Business Districts

• City Centre – Prime central business district

• Spinningfields – Modern mixed-use development, home to enterprises like KPMG, Regus

• Salford Quays – Media hub with broadcasters like BBC at MediaCityUK

• Trafford Park – Major industrial park with over 1,400 companies

Universities

• University of Manchester – Russell Group, 40,000+ students

• Manchester Metropolitan University – 38,000 students

• University of Salford – 20,000 students

• University of Bolton – 14,000 students

• Feed a highly skilled workforce for local industries

Manchester’s universities attract a large number of international students, drawn by the city’s global connectivity and reputation, which supports the local economy and strengthens the rental market.

Manchester’s diversified economy, growing startup scene, major corporate presence, and world-class universities make it one of the most prominent business destinations in the UK outside London. Critical sectoral media, technology, and advanced manufacturing strengths drive economic growth.

Major Development Projects in the Manchester area

Manchester is amid a remarkable transformation, with many large-scale development projects. Manchester City Council plays a crucial role in supporting these major development projects through strategic planning, investment, and infrastructure initiatives. These ventures, designed to address the escalating demands for housing and commercial spaces, are of substantial magnitude:

Victoria North

• £500 million urban regeneration scheme

• 7,000+ new homes planned

• 200,000 sq m office/workspace

• New neighbourhoods, park space

Mayfield

• £1.5 billion mixed-use quarter

• 6,500 new homes across multiple neighbourhoods

• 1.6 million sq ft commercial space

• The public realm, amenities

Circle Square

• £1 billion expansion of the city centre

• 1,700 new rental homes

• 1.2 million sq ft offices/workspaces

• Hotels, retail, green spaces

ID Manchester

• £1.4 billion development near Manchester Piccadilly

• 4,000 new rental homes planned

• 2.6 million sq ft offices/workspace

• Public plazas, parks

These ambitious and transformative projects, spanning residential, commercial, and public spaces, are backed by significant investment from both the public and private sectors. This substantial capital infusion is expected to boost property values across Manchester, making the city increasingly attractive to investors. These projects are set to redefine Manchester’s skyline and solidify its position as a global city in the next decade.

Manchester’s excellent transport links also provide easy access to the Peak and Lake Districts, further enhancing its appeal for residents and investors seeking both urban convenience and proximity to scenic destinations.

Why Manchester is the Perfect City for Property Investment

Off-plan property investment opportunities.

Price Advantage Off-plan properties are usually sold at lower pre-construction prices than already-built homes in the same area. Buyers can lock in lower rates before prices rise upon completion. The investment process for off-plan property in Manchester typically involves sourcing the best developments, selecting units with strong growth potential, and working with reputable developers to ensure a smooth acquisition and maximise returns.

Added Value: Buyers get a newly built property with no renovations needed. Everything is brand new and built to modern standards/specifications.

Choice Selections: Buying off-plan offers the exclusive opportunity to have the first pick of your desired unit, floor plan, view, etc., before the public sales launch, making you feel privileged.

Payment Plan: Off-plan often allows phased payment plans instead of total upfront costs, making financing more manageable.

Potential Appreciation: Properties can increase in value between purchase and completion if the local market rises.

Rental Potential: New builds appeal to tenants, making attracting and retaining quality long-term renters easier.

By securing properties early in the development cycle at pre-construction pricing, off-plan buyers can maximise their returns on property investments upon the project’s final delivery.

We provide foreign property investors with exclusive access to Manchester real estate. With local expertise and insider connections, we offer prestigious off-market opportunities. From elite addresses to high-yield rentals, we tailor solutions to your investment goals, ensuring a distinguished ownership experience in a top real estate market. Off-plan property investments in Manchester can be a strategic choice for the property investor, offering strong returns, market growth, and access to one of the UK’s most dynamic property markets.

Investment Options and Strategies

Manchester offers a diverse range of property investment options and strategies to suit different investor profiles and goals. Buy-to-let properties remain a popular choice, delivering strong rental yields and the prospect of long-term capital growth. For those seeking modern amenities and reliable tenants, investing in new developments can provide benefits such as guaranteed rental income and significant capital appreciation.

Investors looking for a more hands-off approach can explore property investment companies and funds, which offer access to curated portfolios and professional management. The city’s varied neighbourhoods each present unique investment potential: the city centre is ideal for those targeting young professionals and city centre living; the Northern Quarter is known for its creative energy and high rental demand; while Salford Quays offers waterfront living and proximity to major media hubs. By carefully selecting the right area and investment strategy, investors capitalise on Manchester’s strong rental yields, ongoing regeneration, and long-term capital growth prospects.