Manchester: The UK's Top Residential Investment Hotspot

Manchester has recently emerged as a prime destination for residential investment, surpassing London in Colliers’ latest rankings. Renowned for its vibrant property market and robust economic growth, the city offers substantial opportunities for investors. According to Colliers' UK Residential Investment Cities report, Manchester is now a leading investment hotspot, ranked third after Edinburgh and Glasgow. This blog explores why Manchester excels in the residential real estate sector and how Rothmore Property can help you capitalise on this booming market.

Key Takeaways

• Manchester’s Rising Star: Manchester has overtaken London to become the third top city for residential investment, showcasing impressive house price growth and economic expansion.
• Strong Rental Market: The city has seen a 12.3% rise in private rents and a 25.6% increase in homes available, reflecting a dynamic rental market.
• Economic and Educational Hub: With a projected GDP growth of 2.2% and a thriving educational sector, Manchester is attractive to both investors and residents.
• Major Regeneration Projects: Additionally, significant projects like ID Manchester promise to boost the city’s appeal and economic prospects.

Why Manchester is a Top Investment Choice

Impressive Economic and Property Growth

Manchester’s property market shows remarkable resilience and growth. The city has experienced a 33% increase in house prices over the last five years. This rate is significantly higher than the 20-city average of 15%. Furthermore, Manchester’s projected GDP growth of 2.2% over the next five years highlights its economic vitality. With house prices averaging £235,000 and rental growth at 12.3%, Manchester presents a compelling case for property investment.

Dynamic Rental Market

The rental market in Manchester is thriving. The Big Six Residential Development Report from JLL reveals a 25.6% increase in homes available over the past year. Additionally, rental growth has reached 12.2%, ranking second only to Birmingham among the cities analysed. This robust growth in rental rates and availability makes Manchester an excellent choice for investors aiming to maximise rental income.

A Hub of Innovation and Education

Manchester’s status as an educational and research hub adds to its investment appeal. The city hosts over 120,000 students across its universities, with many choosing to stay post-graduation. The £1.7 billion ID Manchester project, led by The University of Manchester and Bruntwood SciTech, will significantly enhance infrastructure and create thousands of new jobs. This development is expected to drive long-term economic and residential growth.

Significant Regeneration Projects

Manchester is undergoing major regeneration initiatives that will transform its cityscape. The ID Manchester project, for example, will deliver over 2 million square feet of commercial space, 1,500 new homes, and nine acres of public areas. This ambitious initiative aims to modernise the city and attract further investment, making it even more appealing for property investors.

Here’s an overview of the top 10 regeneration projects currently shaping Manchester:

ID Manchester

• Location: Near the University of Manchester
• Investment: £1.7 billion
• Description: This ambitious project will deliver over 2 million square feet of commercial space, 1,500 new homes, and nine acres of public realm. It aims to enhance Manchester’s infrastructure and create thousands of jobs, integrating innovation and business with residential living.

NOMA

• Location: North of Manchester City Centre
• Investment: £800 million
• Description: NOMA is a major mixed-use redevelopment project involving new offices, residential units, and retail spaces. The development includes the refurbishment of the historic former Co-op buildings and aims to create a vibrant, sustainable urban environment.

Manchester Life

• Location: Ancoats and New Islington
• Investment: £1 billion
• Description: This project focuses on delivering high-quality residential properties in Ancoats and New Islington. It includes building thousands of new homes, along with shops, schools, and leisure facilities, designed to attract families and young professionals.

Victoria North

• Location: North Manchester
• Investment: £3 billion
• Description: Victoria North will transform 155 hectares of land into a new urban quarter, featuring up to 10,000 new homes, commercial spaces, parks, and public transport links. It aims to revitalise the northern areas of the city and promote sustainable living.

St. John’s

• Location: Southern end of the city centre
• Investment: £1.4 billion
• Description: The St. John’s development will introduce new residential, office, and retail spaces. Key elements include the construction of a new public square and a residential tower, alongside cultural and leisure facilities, to create a vibrant mixed-use district.

Circle Square

• Location: Former BBC site, Oxford Road
• Investment: £1 billion
• Description: Circle Square is a large-scale development that includes offices, residential apartments, and retail spaces. It features a 35-storey residential tower and aims to establish a new city centre hub with modern amenities and green spaces.

Deansgate Square

• Location: Deansgate
• Investment: £300 million
• Description: Deansgate Square includes four high-rise residential towers, with the tallest reaching 201 meters. The project offers luxury apartments and extensive public spaces, contributing to Manchester’s skyline and residential capacity.

Great Jackson Street

• Location: Near Manchester’s city centre
• Investment: £500 million
• Description: This development focuses on building residential towers, including affordable housing and luxury apartments. It will also include commercial and retail spaces, enhancing the area’s connectivity and living standards.

Salford Central

• Location: Adjacent to Manchester city centre, in Salford
• Investment: £650 million
• Description: Salford Central is a major regeneration project aimed at transforming the area with new residential units, office spaces, and public realm improvements. It includes the creation of new streets and parks to integrate it seamlessly with Manchester.

Enterprise City

• Location: Near St. John’s and NOMA
• Investment: £2.5 billion
• Description: Enterprise City is focused on developing a world-class business district with a focus on technology, creative industries, and media. It includes new office spaces, business incubators, and collaborative work environments, designed to foster innovation and growth.

How Rothmore Property Can Assist

At Rothmore Property, we excel at identifying prime investment opportunities in Manchester and other key UK locations. Our team offers personalised services to help you navigate the dynamic property market. Whether you’re looking for high-yield rental properties or opportunities within major regeneration projects, we can help. By leveraging our local expertise and market insights, Rothmore Property ensures you make informed decisions and maximise your returns.

Conclusion

Manchester’s rise as a top residential investment destination is no coincidence. With impressive property price growth, a thriving rental market, and significant regeneration projects, the city offers a wealth of opportunities. As Manchester evolves, its appeal as a vibrant and profitable investment location will strengthen. For those looking to capitalise on Manchester’s potential, Rothmore Property provides expert guidance and support to help you secure the ideal investment properties.