Manchester is the second largest city in the UK after London and has been experiencing impressive growth and development in recent years. As the economy booms and more high-skilled professionals move here, Manchester is becoming an increasingly attractive location for property investors from China and around the world. There are many advantages that make Manchester a prime real estate investment destination that can generate high rental yields.
Manchester property prices keep rising rapidly due to strong demand
According to data from Savills, property prices in Manchester increased by 11% in 2021 and are forecast to grow by 25.8% between 2022-2026. Rents are also predicted to increase by 15.9% over the same period. This exceptional price growth is driven by the city’s expanding economy and population. Manchester’s economy is growing faster than any other major UK city outside of London. Its population exceeds 2.8 million and continues expanding rapidly as professionals relocate from London in search of more affordable housing.
Manchester offers diverse property types with strong tenant demand
With over 80,000 students, Manchester has vibrant demand for student housing rentals. It also appeals to young professionals thanks to its thriving job market, cultural attractions, and transport links. Investors can target the luxury apartment sector, HMO properties for students, or affordable housing for young workers and families. Manchester’s high population growth ensures consistent demand across all these segments. Average rental yields range from 5-7% but can reach over 10% for HMO properties near universities.
Excellent connectivity makes Manchester highly accessible
Manchester offers fantastic transport links within the city and across the UK. The Metrolink tram system connects key areas across Greater Manchester. Frequent rail services run to London in just over 2 hours, and Manchester Airport offers flights worldwide. Upcoming HS2 services will cut travel times to London by another 30 minutes. Manchester’s connectivity makes it easy for investors to manage their properties and for tenants to access other key hubs.
Strong economic growth and regeneration support Manchester’s future prospects
Major investments are transforming Manchester, including a £1 billion fund for transport and infrastructure. Major international companies like Amazon, Booking.com, and Bentley Motors are expanding operations here, boosting high-skill job creation. New cultural venues, restaurants, and housing developments are attracting more young professionals. While other UK cities depend heavily on specific industries, Manchester has a highly diverse economy that promises sustained growth.
With its expanding economy, rising population, and wealth of regeneration projects, Manchester provides an ideal UK property investment location outside of London. Investors can achieve impressive yields from Manchester’s diverse range of housing options while benefiting from ongoing capital gains.