Is Manchester Property a Good Investment?

The Second-Largest City Region Economy in the UK

Manchester has been recognised as an economic powerhouse, boasting a GVA of £78.7 billion (Gross Value Added is the value of goods and services made by an industry, manufacturer, area or region in an economy), making it the second-largest city region economy in the UK behind London. The city is a vital component of the Northern Powerhouse, due to the robust economy, it is emerging as a strong competitor to London. The city’s economy is predicted to grow by £2 billion between 2022 and 2026, with a projected average annual increase of 2.5% from 2024 to 2026, outperforming the national growth rate.

The Establishment of Major Business Hubs

MediaCityUK has transformed from a derelict dock to a unique digital media hub in just 30 years. Since opening in 2012, this 53-acre site has become home to the BBC and ITV, alongside 250 other creative businesses. The growth of MediaCityUK is a key reason for Manchester contending with London. It is one of Europe’s largest media and creative hubs, holding film studios, radio stations, production companies, and creative agencies.

Manchester also houses Trafford Park, the first purpose-built industrial park in the world with over 9 million square metres of business space. Holding over 1,000 businesses and around 35,000 jobs, it remains one of the largest and most successful business parks in Europe.

Extensive Regeneration Scaling up the City

Billions of pounds have been invested into regeneration projects to upgrade and provide new infrastructure, including commercial, leisure and residential developments. The projects have transformed Manchester’s skyline and revitalised towns, creating a new and improved urban living environment and making the city an attractive destination for property investors.

There have been significant regeneration projects that have completely transformed the city. The projects have had such an impact, they have changed property investment in the UK as a whole. Many areas in Manchester are set to experience rapid growth in the coming years as a result of the regeneration. There are also numerous projects in planning for the coming years to further improve the city. 

A Strong Property Market

Driven by a rise of young professionals and students, demand for rental properties in Manchester is strong, leading to steadily rising rental prices and a higher income for investors. The city consistently delivers rental yields above the UK average of 4.71%, with certain areas offering yields as high as 7%. 

Property prices in Manchester are also more affordable compared to other cities, especially in the south. The average house price currently stands at around £249,000, with property prices seeing rapid, double-figure growth since 2021. Manchester’s stable market, impressive growth, capital appreciation potential, and vibrant culture make it an appealing destination for both overseas and local investors.