Manchester is one of Europe’s fastest growing cities. With an ever-growing population in a city with rich heritage and culture, booming with high ranking universities, Manchester is rapidly becoming one of the most popular property investment hotspots in the UK outside of London.
As more big names moving to and setting up new offices in Manchester, thousands of jobs and billions of investment have been brought to the city. The relocation of BBC from London to MediaCityUK at Salford Quays in 2011 was one of the earlier examples.
Spinningfields is one of the important names in the regeneration project, the CDB that dubbed as the “Canary Wharf of the North” with the presence of banks and financial institutions such as HSBC, RBS and Barclays. Other notable tenants include American shared workspace company WeWork, choosing Manchester as the first location in the UK outside London. Professional services giant PwC has also taken up residency in the same commercial tower, No.1 Spinningfields, along with national law firms like Browne Jacobson.
Amazon is also believed to be close to agreeing to take 91,000 sq ft at Hanover House in the city centre of Manchester, setting up an HQ in the Northern city. It is expected a further number of high profile technology occupiers will announce plans to re-locate or expand in the city.
Despite the growing of population brought by the regeneration effort, housing supply is still significantly undersupply. Analysis has revealed that Manchester’s population is growing nearly 15 times faster than homes are being built, house-building in Manchester lagging far behind the growing number of people living in the city. Housing demand remain very strong in the coming years as more construction projects of new private housing have only just started, and would need two to five years to complete.
In addition to Sterling struggling to make any further inroads against major currencies recently, what makes NOW the right time to invest in Manchester is the potential growth of the property price.
According to UK Cities House Price Index, Manchester’s housing price has grown 7% over the last 12 months, significantly higher than London’s 1.8% and national average of 4.4%. According to a recent research, Manchester’s urban land values rising 24% over the last 12 months, while the rest of the UK on average saw an increase of just 4%. It is expected the selling price of new supply will go up as land prices continue to rise.
The prospect of Manchester is back by survey done by Deloitte. Simon Bedford, partner at Deloitte Real Estate, said, “Manchester has firmly established itself as one of Europe’s fastest growing cities. Backed by significant investor confidence, a strong business community, and an influx of new talent, the demand for property, particularly in the residential market, has never been more evident.”
Source: Visit Manchester, Buy Association, Manchester Evening News 1, Manchester Evening News 2, Manchester Evening News 3 Home Track, Financial Times, BQ Live