Economic and residential growth is here to stay
Earlier this year, we published an article asking if Manchester property investment could be the story of 2018. In that article, we highlighted the following:
- Expansion of development across the city
- Delivery of property for all tenant types
- The masterplan that promises premier league property development
- Collaboration between the local authority and private investment to regenerate swathes of brownfield land
In this article, we update you on the rapid transformation of Manchester and how its city landscape is changing.
Manchester is growing up – literally!
Manchester is getting taller. The desire for city centre living is encouraging developers to build residential towers and deliver thousands of new homes. Deansgate Square Towers – not long ago little more than a hole in the ground – is growing at a fast pace. These will dominate the skyline to the west, eclipsing the Beetham Tower, which was once the tallest in Manchester.
The residential market in Manchester is flourishing, as the city’s economy is proving itself as a world-class city for foreign direct investment and property investors. Its economy has grown faster than London’s since 2014 and is expected to continue to grow rapidly.
As the economy grows and adds jobs, so, too, does the population. Many of Manchester’s 100,000 students studying in its universities stay on for the opportunities provided in its thriving knowledge economy. More people are choosing rented accommodation to suit their lifestyle – and this creates a wonderful opportunity for buy-to-let property investors.
The big boys are investing in Manchester property
Manchester is attracting the new breed of buy-to-let investors. Institutional investors are taking advantage of the potential here, and ploughing money into buy-to-rent opportunities. LaSalle Investment Management, M&G, and Invesco (among others) have recently been joined by Legal & General Investment Management on the roll call of institutional landlords in Manchester.
L&G has followed up its Slate Yard, Salford investment with a deal for Deansgate Square’s West Tower. The deal is good for both L&G’s investors (who want long-term income and capital appreciation) and Manchester City Council (who want to grow the residential offering across tenure types).
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Manchester set for continued residential growth
Manchester City’s growth strategy envisages a rapid expansion of residential stock, and as development ripples out from the city centre new locations for development will be unlocked. Plans are for around 15,000 new homes to be delivered in the next 15 years – with property types ranging from apartments to penthouses and townhouses.
The land is expected to be freed up in all directions, with £4 billion of investment pouring into accommodate regeneration and new developments in the Northern Gateway, Eastern Gateway and beyond in towns across the breadth of Greater Manchester.
Manchester’s well-connected towns are thriving, too
Investment potential is not limited to the city centre and its fringes in Manchester. The Metrolink connects outer towns so well with the city centre that investors can discover some fabulous opportunities in nearby Rochdale, Bury, Altrincham, Didsbury, and all places between.
Indeed, The Sunday Times recently called out Altrincham as one of the best places to live in the UK, noting the quality of its schools, housing and transport links.
Manchester’s economy is growing and is likely to continue to do so as we near the delivery of HS2 services, which will reduce journey times to London to just a shade over one hour. This massive infrastructure project is the keystone to unlocking the potential of Manchester at the heart of the Northern Powerhouse. As the local economy grows, Manchester’s housing shortage may become worse – and the long-term effects of this imbalance are likely to provide further impetus to property values and rental prices.
There are many opportunities for property investors to take advantage of Manchester’s fantastic property fundamentals, with different property types to suit. Your challenge to benefit from investment here is to find the best opportunities – to help you, download your free Hotspots Guide to Manchester. To benefit from an in-depth discussion of how investing in property in Manchester could boost your portfolio returns, contact Gladfish today to book a meeting.
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