15 Oct 2024

Manchester’s Growth: What it Means for Property Investors

Category: Manchester

In recent years, Manchester has experienced incredible growth, rapidly expanding into a thriving hub of opportunity. With no signs of slowing down, the city’s momentum offers promising prospects for investors.

Let’s dive into the key figures driving this growth and why they signal a bright future for anyone looking to capitalise on Manchester’s upward trajectory.

Author: Sophie Hope

Digital Marketing Executive

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Property
Price Growth

Manchester’s average house price is now approximately £249,000, with property prices experiencing rapid, double-digit growth since 2021. Over the past five years, the city saw a huge 33% rise in property prices, significantly outpacing the national average of around 15%. Between June 2023 and June 2024 alone, prices climbed by 2%, the highest growth rate among cities in England.

Recent studies reveal that investors in Manchester have achieved an impressive 65% growth over the past eight years. For investors, this presents an outstanding opportunity for large returns. With future price increases predicted, those who act quickly can expect to benefit from exceptional capital appreciation

Economic Growth

Manchester is widely recognised as an economic powerhouse, with a Gross Value Added (GVA) of £78.7 billion, making it the UK’s second-largest city-region economy after London.

In the past year, Greater Manchester saw 41,222 new companies registered, a 6.4% increase from 2022. The city continues to attract major businesses like Amazon, the BBC, and Kellogg’s, establishing itself as a prime destination for growth. With this influx of companies, Manchester is projected to experience the fastest employment growth among UK cities from 2024 to 2026, with job numbers increasing by 1.8% annually.

As a result of this rise in employment and business activity, Manchester’s economy is forecast to grow by £2 billion between 2022 and 2026, with an expected annual growth rate of 2.5% from 2024 to 2026, outpacing the national average

Population Growth

As of 2019, Manchester’s population stood at around 553,230, with research indicating a 1.14% annual growth rate over the next decade. In the wider Greater Manchester region, the current population has reached 2,812,000, showing a 0.75% increase since 2023, continuing the steady annual growth trend of around 0.75% since 2021.

This population rise is largely driven by the city’s thriving business environment and attractive amenities, making it an increasingly desirable place to live. Additionally, Manchester’s education sector welcomes around 124,000 students each year, with a graduate retention rate of 51.5%. This means over half of Manchester’s graduates choose to remain in the city, further fueling its population growth.

Rising Demand

Manchester’s rental market remains robust, with housing demand consistently exceeding supply. In 2022, there were just 360 rental properties available in the city centre, a record low. This shortage is unlikely to improve in 2024, as construction rates are expected to slow, further limiting the availability of new homes.

Meanwhile, rental demand is set to rise, driven by factors such as new transport links and ongoing regeneration projects, which could positively impact both property values and rental demand in the future.

Currently, the average rental yield in Manchester is around 6.5%, with some areas achieving yields as high as 9.4%. As of December 2022, the average monthly rent for a one-bedroom apartment in the city centre stood at £1,172, and this figure is likely to have risen in line with Manchester’s growth. As rents increase, investors can expect higher monthly incomes and faster returns on investment.

Regeneration

Manchester is entering a time of transformation, with sustainability at the front of its ambitious plans. With major regeneration projects and environmentally friendly initiatives underway, the city’s future looks brighter than ever. The current regeneration is set to attract a wave of demand to the city.

Key ongoing regeneration projects include:

Old Trafford Stadium
Trafford Wharfside
NOMA
Retail Park Redevelopment
Wythenshawe Town Centre
Green Heart of Ancoats

These initiatives have already brought thousands of jobs and homes to the city, driving up property values. Regeneration is a vital driver of urban growth, and with the scale of development in Manchester, the city is poised for extraordinary expansion in the coming years.

Why is Now the Time to Invest in Manchester?

Manchester is rapidly emerging as one of the UK’s fastest-growing cities, with interconnected factors driving its impressive expansion. This dynamic growth is fueling increased demand for properties, pushing property prices higher. As the economy grows, more capital is being reinvested into the city through large-scale regeneration projects, elevating Manchester to meet the evolving needs of its residents.

For investors, this creates a compelling opportunity as rising property values combined with robust economic growth translates into strong capital appreciation and higher returns. By investing in Manchester now, you’ll be positioned to reap the rewards of the city’s ongoing transformation

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