An Overview of Manchester’s Property Market Growth

Price Growth:

Promising Uptrend

Manchester’s property market has shown remarkable resilience and growth in recent years. The average property price in the city now stands at approximately £249,000, reflecting a striking 33% increase in the last five years alone. This is well above the national average, which has seen a growth of around 15% during the same period. Notably, Manchester’s property prices have seen impressive double-digit growth since 2021, with a 2% increase from June 2023 to June 2024. This placed Manchester as the top-performing city for property price growth in England.

This rise in property prices is a clear indicator of Manchester’s growing popularity and its continued appeal to both homebuyers and investors. With demand expected to remain strong, investors who enter the market now are well-positioned to benefit from continued capital appreciation.

Rental Growth:

High Demand,
High Returns

Manchesters’s rental market is experiencing a similar upward trajectory. In 2024, rental prices have surged by 11.3% year-on-year, with average rents now reaching £1,291 per month. This growth is largely driven by the city’s thriving student population and a growing base of young professionals. Many are attracted by Manchester’s vibrant cultural scene, expanding job market, and relatively affordable living costs compared to other UK cities like London.

For property investors, this presents a unique opportunity to achieve strong rental yields. The combination of rising rents and a high demand for rental properties makes Manchester one of the most lucrative locations for buy-to-let investment in the UK. As more people look to settle in the city, rental demand is projected to remain high, ensuring a steady stream of income for investors.

With Manchester’s property prices and rents continuing to climb, early investors stand to benefit significantly from both capital appreciation and attractive rental yields. The city’s growth is far from slowing down, with infrastructure improvements, major regeneration projects, and a flourishing job market all contributing to its long-term potential.

For investors looking for a well-rounded opportunity, Manchester stands out as a prime location. Whether you are interested in capital growth, rental yields, or both, Manchester’s property market offers something for every investor. Act now, and secure your place in one of the UK’s most promising real estate markets.

Key Drivers of Manchester’s Property Market

Regeneration: £2 Billion Transformation

Manchester is undergoing a massive regeneration, enhancing its appeal and quality of life. The city’s largest project is the £2 billion redevelopment of Old Trafford Stadium and its surrounding areas. This transformation will create a world-class “national venue,” expected to generate £7.3 billion annually for the local economy and create 92,000 new jobs. These developments are attracting both homebuyers and renters, further driving demand for property.

Thriving Economy: Outpacing the UK

Greater Manchester has consistently outperformed the UK economy, growing at 2.8% annually over the past decade, far surpassing London (1.1%) and the national average (1.3%). The city is a hotspot for business, with more new businesses per capita than any other UK city outside of London. Manchester also leads the country in foreign direct investment, and job numbers are expected to rise by 1.8% annually between 2024 and 2026, the fastest growth rate among UK cities. This economic boom is forecast to add £2 billion to the region’s GDP by 2026.

A Magnet for Professionals

Manchester’s growing economy is attracting businesses from across the country, leading to an influx of working professionals. This demand is driving population growth and increasing demand for housing, particularly in the city centre and surrounding areas. The city’s diverse job market and vibrant cultural scene make it a top choice for young professionals looking to settle in a dynamic environment.

Student Population: A Key Growth Driver

With one of the largest student populations in Europe, Manchester boasts over 100,000 students, including more than 27,000 international students. The city has a high student retention rate, with around 51% of graduates staying in the area after finishing their studies. This creates a constant demand for rental properties, both for students during their studies and for young professionals post-graduation, ensuring a steady stream of tenants.

Best Areas to Invest in Manchester: High-Growth Hotspots

Trafford: A Business Hub with Strong Economic Growth

Trafford is a powerhouse for business, home to over 120,000 registered businesses and a working population of 2 million. One of the UK’s largest industrial estates, Trafford Park, has seen significant growth since 2008, now hosting over 1,400 businesses. Beyond its economic strength, Trafford is famous for its world-class sporting venues, including the iconic Old Trafford Stadium. This stadium attracts around 2.5 million visitors annually, further boosting the area’s appeal. With a combination of a strong local economy and high demand for housing, Trafford remains an excellent investment choice for both commercial and residential properties.

Salford: Rapid Growth and Exceptional Capital Appreciation

Salford is one of the North West’s fastest-growing cities, with its population increasing by 15.4% between 2011 and 2021, the fastest growth rate in the region. This surge is mirrored by an impressive 289% increase in property prices over the past decade. In the year leading up to March 2023, property prices rose by 4%, adding an average of £8,400 to the value of homes. As Salford continues to develop, driven by regeneration projects and its proximity to Manchester city centre, it remains a top area for capital appreciation. Investors can expect substantial returns as the city’s demand for both residential and rental properties grows.

City Centre: Manchester’s Thriving Urban Core

Manchester City Centre offers a compelling opportunity for investors seeking a high-demand market. Known for its vibrant lifestyle, the city centre attracts a diverse mix of tenants, from young professionals and students to those drawn to the excitement of urban living. With a rapidly expanding population, Manchester city centre is expected to reach 60,000 residents by 2027, which will create even greater demand for housing. The city’s central location, excellent transport links, and thriving cultural scene ensure steady demand for properties. Making it an ideal location for buy-to-let investors seeking reliable rental yields and long-term growth.

 

Each of these areas presents unique opportunities driven by economic growth, regeneration, and increasing demand for housing. Trafford’s business strength, Salford’s impressive property value increases, and the continued expansion of Manchester City Centre, show these areas are set for ongoing growth. For investors, the combination of rising property values and strong rental demand makes these locations prime targets for securing solid returns.

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