Manchester stands out in 2024 as an exceptional location for residential property investment. In this blog, we explore why this vibrant city is an attractive hotspot for investors.
World class student city with high graduate retention
With nearly €652 million in ERC funding distributed across multiple projects, Manchester will cement its position as a world class student city. At the same time, half of Manchester’s students choose to remain in the city after finishing their studies, with 32,000 graduates joining the workforce yearly—a figure surpassing its regional counterparts. The city’s jobs market is expanding rapidly with innovative co-living schemes, a housing type similar to student accommodation but for rent to young professionals, anticipated to bridge the gap. For investors, this means a continuous pipeline of academic professionals, students, and young professionals to drive rental demand.
Regeneration of brownfield sites
Manchester City Council plans to construct 36,000 new homes by 2032, with 3,000 new homes earmarked for the city centre. With this, the council is prioritising brownfield development with £51.6m made available to kick-start the regeneration of 31 brownfield sites across the city. This will bring opportunities for property investors to invest in modern living spaces in emerging locations where they can get in ahead of the curve.
At E.R.E Property, we have several investment opportunities sited at major regeneration schemes. Salboy’s M3 development comprises 556 apartments and 30,000 square feet of commercial space at the former Boddington Brewery site, and their M4 development comprises 237 apartments within a 37-storey tower next to the new City River Park, one of Manchester’s largest city centre green spaces spanning 113 acres. Providing high quality homes with a host of residents’ facilities, these two off-plan investments offer yields in excess of 6%.
New commercial districts to drive rental market
New advanced manufacturing and innovation districts Atom Valley, providing 1.6 million square metres of employment space and 20,000 new jobs 20 minutes from the city centre, and ID-Manchester, a £1.7bn project next to the University of Manchester creating over 10,000 jobs, are set to enhance Manchester as a global business hub.
New jobs and the subsequent influx of professionals will attract residential property investment as rental demand expands. Indeed, research from property finance experts Together indicates that 31% of landlords plan to expand their portfolios in 2024, with 59% also planning to increase rents, reflecting renewed confidence in the market. The city’s transformation will provide an opportunity for savvy investors to capitalise on Manchester’s growth.
Impact of falling mortgage rates
Interest rates are predicted to fall later this year as CPI inflation returns to target, offering a much-needed boon for the housebuilding sector, which experienced its biggest contraction since the 2008 financial crisis. This, coupled with a recovery in the wider economy, is expected to result in growth in housebuilding activity, leading to new investment opportunities reaching the market. At the same time, falling mortgage rates will boost demand for residential property and improve returns on investment as landlord costs fall and property prices increase. According to JLL, alongside Birmingham, Manchester is predicted to be the strongest city for house price growth until 2027.
Manchester in 2024 presents a unique investment landscape bolstered by a buoyant student housing market, young professionals joining the city’s workforce, and new commercial districts—all thriving under improving economic conditions. For residential property investors, new residential developments offer a compelling proposition with exceptional long-term growth potential. Contact us today to enquire about our investment opportunities in Manchester.
