Property investment Manchester – Why it’s ranked #1 city for investors

Manchester has been named as the highest-ranking city in England for property investment, according to Colliers’ latest edition (Aug 2024) of its Top UK Residential Investment Cities report.

It is unsurprising that Manchester has become a beacon for property investors. With a booming economy, rapid population growth, and a forward-thinking approach to urban development, Manchester offers a unique blend of opportunities for residential investors. Here’s some of the key factors that make Manchester the top city for property investment in the UK.

Economic growth

Between 2024 and 2026, Manchester’s economy is expected to grow at an annual rate of around 2.5%, making it the third-fastest-growing city in the UK after London and Reading, and the fastest-growing city in the North of England.

Although there are always new start-ups making a buzz, there are many established businesses operating successfully in the area. These include Amazon, BBC, Kellogg’s, PG Tips, and Sky to name a few well-known brands. The city is a hub for digital and creative industries, and it continues to attract investment in areas such as life sciences, advanced manufacturing, and financial services.

For investors, the robust and growing economy of Manchester translates into a strong demand for properties as the workforce continues to grow.

Population and demographics

Manchester is a diverse city, attracting people of all ages and walks of life. This means there are a variety of demographics looking for property, from university students to young professionals, to families who call Manchester their long-term home. The current population of Manchester is 2,812,000, having grown between 0.7-0.8% every year since 2002. This growth is expected to continue, so there will always be a steady stream of potential tenants and buyers.

Culture and liveability

Manchester consistently ranks high in surveys of liveability in the UK, thanks to its rich culture and vibrant social scene. It is home to plenty of museums and art galleries, as well as libraries like the incredible John Rylands Library with its neo-Gothic architecture.

Residents will never be short on choice of restaurants to frequent, with the culinary scene covering everything from authentic street food to fine dining. The Curry Mile emphasises the diversity of Manchester, with this famous stretch dedicated to South Asian restaurants and takeaways.

When it comes to a night out, areas like the Northern Quarter and Spinningfields are particularly known for their stylish bars. And the craft beer scene is also strong, with numerous microbreweries and taprooms where you can sample locally brewed ales and beers.

Festivals and events are aplenty, including annual literature and jazz festivals, a beautiful Christmas market, and one of the UK’s largest Pride events celebrating equality and diversity. Plus residents don't need to go anywhere else for shopping, with the expansive Arndale and Trafford shopping centres, plus several high street destinations and boutique districts.

The city is ever-evolving and makes Manchester a magnet for both renters and buyers, ensuring that properties are in constant demand.

Research and education

Manchester is the home of not one, not two, but five universities. Not only does this mean there’s thousands of students always needing rental accommodation, but it also means there’s plenty of research and innovation hubs in the city. The University of Manchester in particular is a world-renowned research institution, consistently ranked among the top universities globally.

Manchester Science Park is a prominent site for tech and biotech companies, whilst the Henry Royce Institute focuses on material science and innovation. The opportunities these places bring draw in workers not only from across the UK but also internationally. A great opportunity for buy-to-let investors who can purchase high-quality housing in neighbourhoods close to these hubs.

Transport and connectivity

Manchester’s transport infrastructure is excellent. With two major train stations, an extensive tram network, bus network, and Manchester Airport, residents and businesses enjoy fantastic connectivity both domestically and internationally.

The ongoing expansion of the high-speed rail network, including the HS2 project, will further enhance Manchester’s appeal by reducing travel times to London and other key cities.

The city is becoming increasingly bike-friendly, with more cycling routes and bike-sharing schemes. The city centre is also compact enough to be walkable.

This level of connectivity makes Manchester a desirable location for many, which in turn strengthens the property market.

Sustainability

Sustainability and combating climate change is a key topic that regularly dominates headlines. Manchester City Council has committed to becoming carbon-neutral by 2038, 12 years ahead of the UK government’s target. They have set 48 actions to achieve covering five areas:

• Buildings and Energy
• Transport and Travel
• Reducing Consumption-Based Emissions and Influencing Suppliers
• Climate Adaptation, Carbon Storage and Carbon Sequestration
• Influencing Behaviour and Being a Catalyst for Change

With a full list of their sustainability commitments online, the Council is clearly dedicated to the cause. This could be another factor that increases the desirability of the city to live in, and also future proofs any investments in the area.

Property market dynamics

Manchester’s property market is thriving, with average property prices still relatively affordable (although on the rise) compared to London and the South East.

All types of properties can be found here, from more modern apartments in the city centre to Victorian and Edwardian terraced houses in the suburbs. The city’s ongoing regeneration projects, particularly in areas like Ancoats and the Northern Quarter, are transforming once-industrial zones into trendy areas with new-builds.

Demand for property in Manchester remains strong, driven by all of the positives mentioned in this article, plus its appeal as a vibrant and more affordable alternative to London.

Manchester continues to attract domestic and international investors due to its average rental yield of 5-9%. The M14 postcode which lies just south of the city centre had the highest yield of all cities in the North of England last year, at a massive 12%.

Property investment Manchester

Whether you’re looking to invest in buy-to-let properties, new developments, or long-term capital growth, Manchester offers a compelling proposition for investment. With its bright future and ongoing transformation, Manchester stands out as the city that promises both stability and growth in the years to come.

Looking for property investment opportunities in Greater Manchester? Get in touch with our Manchester or Fallowfield offices for expert guidance.