5 Reasons To Invest In Manchester
Are you looking to make a smart investment in a thriving city? Look no further than Manchester! Known as the powerhouse of the North, this vibrant city has become a hotspot for investors, and for good reason.
In this article, we will explore five compelling reasons why investing in Manchester is a smart move.
High yields
Manchester offers excellent rental yields, making it an attractive choice for buy-to-let investors. The city's strong rental market and high demand ensure a steady and profitable income stream.
Thriving economy
Manchester boasts a thriving economy with diverse sectors, from finance and media to technology and healthcare. This creates a stable investment climate with a range of opportunities for growth and profitability.
Constant development
Manchester is undergoing substantial regeneration, particularly in areas such as Salford Quays and Ancoats. These developments not only enhance the city's infrastructure but also increase property values, making it an ideal time to invest.
Strong student market
Manchester is a student hub, home to prestigious universities and a large student population. This presents an excellent opportunity for investors in the student accommodation sector, with high demand and potential for long-term rental returns.
Great transport links
The city's excellent transport links, including an international airport and extensive rail network, make it easily accessible and attractive to both domestic and international investors.
We are going to go into more detail on Why Manchester is a fantastic location for investment in the UK
Economic growth and development in Manchester
Manchester has long been recognised as the powerhouse of the North, and its economic growth and development in recent years have been nothing short of remarkable.
The city has undergone a remarkable transformation, emerging as a hub of innovation, creativity, and entrepreneurship.
Diverse & thriving industries
At the heart of this economic resurgence is the city's diverse and thriving industries. From finance and professional services to technology and advanced manufacturing, Manchester boasts a wide range of sectors that are driving its growth. The city is home to a number of leading companies and organizations, including the BBC, ITV, and the Co-operative Group, all of which have chosen Manchester as their base due to the city's exceptional talent pool and business-friendly environment.
Growing GDP
The city's economic success is also reflected in its impressive GDP figures.
Manchester's GDP has grown by over 20% in the last decade, outpacing the national average and cementing its status as one of the UK's most important economic centres. This growth has been charged by a range of factors, including significant investment in infrastructure, a thriving startup ecosystem, and a highly skilled and educated workforce.
Property market in Manchester
The property market in Manchester has been a key driver of the city's economic growth, with the real estate sector playing a crucial role in shaping the city's future.
In recent years, Manchester has seen a surge in property development, with a range of new residential and commercial projects transforming the city's skyline.
High demand for property rentals
One of the most notable trends in Manchester's property market is the rise of the city's rental sector.
With a growing population and a thriving economy, demand for rental properties in Manchester has soared, leading to a significant increase in rental yields and property values.
This has made the city an attractive proposition for buy-to-let investors, who are drawn to the city's strong rental market and the potential for long-term capital growth.
Major redevelopment in key locations, perfect for property investors
The city's regeneration efforts have also had a significant impact on the property market. Areas such as:
Salford Quays.
Ancoats.
Green Quarter.
Old Trafford.
Have undergone major redevelopment, transforming once-neglected neighbourhoods into thriving hubs of activity. These developments have not only enhanced the city's infrastructure but have also led to a significant increase in property values, making them an attractive investment proposition for both domestic and international buyers.
Support and incentives for investors in Manchester
Manchester's success as an investment destination is not just a result of its thriving economy and dynamic property market, but also the support and incentives available to investors in the city.
The local government and a range of other organisations have put in place a range of initiatives to attract and support investors, making it easier than ever to invest in Manchester.
Greater Manchester investment fund
One of the key initiatives is the Greater Manchester Investment Fund, a £500 million fund that provides financing and support to businesses and investors looking to invest in the region. This fund offers a range of financial products, including loans, equity investments, and venture capital, making it easier for investors to access the capital they need to fund their projects.
Tax incentives
In addition to the Greater Manchester Investment Fund, the city also offers a range of tax incentives and other benefits to investors.
For example, the city's Enterprise Zone, which covers areas such as Salford Quays and Trafford Park, offers a range of tax breaks and other incentives to businesses and investors, making it an attractive proposition for those looking to invest in the city.
Manchester's Impressive Rental Yields And Capital Growth Outshine London
One of the key reasons why investing in Manchester is a smart move is the city's impressive rental yields and capital growth, which often outshine even the most sought-after London.
Higher yield vs London
According to recent data, the average rental yield in Manchester stands at around 5.5%, significantly higher than the 3-4% typically seen in London. This means that investors in Manchester can expect to enjoy a steady and reliable stream of rental income, which can be reinvested into the property or used to fund other investments.
Strong capital growth
Moreover, Manchester's property prices have been steadily rising in recent years, with the city's average house price now standing at around £210,000 – significantly lower than the £500,000+ typical of many London boroughs.
This means that investors in Manchester can benefit from strong capital growth, as the city's property values continue to appreciate at a rapid pace.
Manchester's Growing Appeal To Overseas Property Investors
In recent years, Manchester has emerged as a prime destination for overseas property investors, attracting interest from a diverse range of international buyers.
This growing appeal is driven by a combination of factors, including the city's strong economic performance, its thriving property market, and its reputation as a hub of innovation and opportunity.
Overseas investment
The influx of overseas investment has had a significant impact on Manchester's property market, driving up demand and driving further development and regeneration across the city. This, in turn, has created new opportunities for investors, as they seek to capitalise on the city's continued growth and development.
Overall, Manchester's growing appeal to overseas property investors is a testament to the city's remarkable transformation and its status as a leading investment destination in the UK.
As the city continues to grow and evolve, it is likely that its appeal to international buyers will only continue to increase, making it an increasingly attractive proposition for those looking to invest in the North West of England.
Conclusion
In conclusion, Manchester is a thriving city that shows no sign of stopping, out performing London as a key area in the north for capital growth and high rental yields, Stayful can support you in your property investment journey around Manchester by providing Maximum yields through our Airbnb management in Manchester as well as provide expert advise on key locations to invest in Manchester property, get in touch and lets have a chat!