Property Investment Manchester in 2023: The Essential Guide

Manchester is a vibrant city that has become a sought-after destination for property investment. With its thriving economy, attractive housing prices, and high rental demand, Manchester offers exciting opportunities for investors looking to be part of a growing and dynamic city.

So, let’s dive in and explore what makes Manchester the perfect choice for your next property investment Manchester.

Key Takeaways

  • Manchester’s property market offers competitive prices, high yields and strong rental demand with growth potential.

  • Key areas for investment in Manchester include the city centre, Salford Quays and Stretford, offering attractive returns.

  • Successful property investments require research into high-demand areas & collaboration with a property developer.

 


Manchester Property Market Overview

A photo of Manchester's City's Skyline

Manchester’s property market is performing exceptionally well, with its competitive housing prices, strong rental demand, and considerable growth potential making it an attractive location for property investors.

Located in the North West of England, Manchester is a major city with a population of approximately 2.8 million people, making it the third-largest metropolitan area in the UK. The average house price in Manchester is £234,800.

With the city’s excellent transport links, including Manchester Airport, and the ongoing expansion of MediaCityUK, the demand for investment properties in Greater Manchester remains high, with a significant gap between the available property and the demand.

Therefore, the buy-to-let property market in Manchester offers profitable investment opportunities, promising a bright future for Manchester’s property market. The city is experiencing one of the largest growths in its rental market across the United Kingdom, making it an attractive location for property investments.

Key factors contributing to Manchester’s promising property market include:

  • The growing population is expected to ascend exponentially in the next five years

  • A thriving economy worth approximately £75 billion

  • Remarkable rental yields, house prices, and rental demand

  • First-rate infrastructure, regeneration, employment opportunities, and economic growth

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Housing Prices

Manchester’s housing prices offer good value for investors, with the average house price across Greater Manchester standing at £232,190. The city is home to some of the most affordable areas for property investment in the North West, such as:

  • Bolton

  • Oldham

  • Rochdale

  • Wigan

However, areas like Trafford and Stockport are considered the most expensive in Greater Manchester for property investment. Yields in Greater Manchester typically range from 4% to 6%, making it an attractive option for property investors looking for a healthy return on their investment.

Significant regeneration projects are currently underway in Manchester City Centre, with areas like Ancoats, New Islington, and Deansgate witnessing rising house prices and strong tenant demand. Investing in the city centre provides investors with attractive yields, robust rental demand, and abundant amenities and attractions, making it a prime location for property investment in Manchester.


Rental Demand

Manchester exhibits a strong demand for rental properties, driven by locals, workers, students, and short-term letting, with average monthly rents of £1,461 and yields ranging from 4% to 6%. The average rental cost for a House in Multiple Occupation (HMO) double room is £532 per calendar month, while single rooms typically rent for £436 per calendar month. Renting a one-bedroom flat in the city centre can be quite expensive. On average, it would cost £1,172 per calendar month.

The city’s thriving rental market is bolstered by its:

  • Low cost of living

  • Affordable housing

  • Young demographic

  • Large student population

  • A varied range of property types

Manchester’s student accommodation market is particularly noteworthy, with over 100,000 students from five major universities in the area and a lack of suitable housing.

This high demand for student property has led to increased rental yields, making student accommodation a lucrative investment opportunity in Manchester.

Furthermore, the city’s high retention rate of students has a positive effect on the property market, increasing tenant demand for rental accommodation and boosting the buy-to-let market.


Growth Potential

Growth is anticipated in Manchester’s property market, with house prices predicted to increase by 19.3% between 2023 and 2027, and rental prices forecasted to rise by 21.6% in the same period. This house price growth is influenced by the significant shortage of properties in Manchester, a major city in the North West, which is a primary factor contributing to the city’s property market growth. As a result, investing in Manchester property has the potential to yield significant success.

This growth potential makes Manchester an ideal location for property investment. The city offers:

  • A thriving economy

  • Excellent transport links

  • Ongoing regeneration projects

  • An economic worth of approximately £75 billion

  • A diverse range of industries

These factors make Manchester an attractive option for property investment, with the potential for both rental income and capital appreciation.


Top Areas for Property Investment in Manchester

A property for sale sign

When investing in Manchester’s property, prioritising areas with high yields and robust rental demand is crucial. The city's top areas for property investment include the city centre, Salford Quays, and Stretford. The city centre provides investors with attractive yields, robust rental demand, and abundant amenities and attractions.

Salford Quays is highly attractive due to its proximity to the city centre, excellent transport connections, and selection of facilities and attractions. On the other hand, Stretford is a desirable location for property investment, given its proximity to Manchester city centre, dependable transport connections, and selection of amenities and attractions.

Focusing your investment efforts on these top areas will ensure you maximize the potential returns on your property investment in Manchester.

By understanding the local market, identifying high-demand areas, and selecting the right type of property that aligns with your investment goals, you can make the most of the city’s thriving property market and enjoy the benefits of a successful property investment.

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City Centre

Manchester City Centre is popular for high-end flats and has a growing population, leading to rising house prices and yields. Some key features of Manchester City Centre include:

  • Average price of properties: £254,877

  • High demand for luxury flats

  • Exceptional transport connections

  • A vibrant selection of bars and restaurants

  • Stunning architecture

  • Soaring tenant demand

These factors make Manchester City Centre a highly desirable property investment location supported by the Manchester City Council.

Manchester City Centre investments yield attractive returns, strong rental demand, and many amenities and attractions for investors.

The ongoing regeneration projects in areas like Ancoats, New Islington, and Deansgate are witnessing rising house prices and strong tenant demand, making these areas prime locations for property investment in Manchester.


Salford Quays

Salford Quays is an attractive area for property investment due to its proximity to MediaCityUK and the University of Salford, making it popular among students and young professionals. The area is renowned for its regeneration efforts based around the old docklands and is home to the Lowry Theatre, Imperial War Museum, Media City, the BBC, and ITV.

The robust creative, media, tech, and start-up ecosystem, along with the ongoing expansion of MediaCityUK, is generating substantial demand for properties in the Salford Quays area and its surrounding areas.

Salford Quays investments can leverage the area’s strong rental demand, superior transport links, and diverse facilities and attractions. With the forthcoming expansion of MediaCityUK, backed by £1bn of private investment, the area’s appeal is set to continue to grow, making it a prime location for property investment in Manchester.


Stretford

Stretford is a diverse area with good transport links and high yields, particularly in areas like Trafford. Stretford is situated in Trafford, Greater Manchester, England, on flat ground between the River Mersey and the Manchester Ship Canal.

The area offers convenient public transport options, with frequent bus and tram services connecting the area to the city centre, and the Manchester Metrolink tram system serving the area, providing easy access to the city centre and other parts of Greater Manchester.

Investments in Stretford offer appealing returns, with rental yields of up to 8% attainable in certain areas. Areas such as Trafford are particularly attractive to investors due to their close proximity to the city centre and convenient transport links. By focusing your investment efforts on Stretford, you can capitalise on the area’s strong rental demand, excellent transport connections, and selection of amenities and attractions.


Types of Property Investment Opportunities in Manchester

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A variety of Manchester property investment opportunities are available, including:

  • Buy-to-let residential properties: properties that are acquired to lease out to occupants, providing investors with rental income and the potential for capital appreciation.

  • Student accommodation: housing specifically tailored to the needs of students, typically situated close to universities and colleges, and offering higher rental yields and lower average house prices than residential property.

  • Commercial properties: real estate utilized for business operations, including offices, stores, and storage facilities, and can offer attractive returns for investors.

Investors can choose the property type that aligns best with their investment objectives and risk tolerance by exploring the diverse investment opportunities in Manchester.

Whether you’re looking to invest in buy-to-let residential properties, student accommodation, or commercial properties, Manchester’s thriving property market offers a wealth of opportunities for investors to capitalise on.

Book a Free Property Investment Consultation Call

 


Buy-to-Let Residential Properties

Buy-to-let residential properties in Manchester offer high rental yields and strong demand from young professionals and families. The city’s diverse range of property types, from high-end flats in the city centre to affordable homes in suburban areas, provides investors with plenty of options to choose from when investing in the Manchester buy-to-let market.

In addition, Manchester’s growing economy and job market attract a steady influx of young professionals and families, further fueling the demand for rental properties.

Considerations such as location, property type, and potential rental income are vital when investing in Manchester’s buy-to-let residential properties. Investors can maximise their returns and benefit from the city’s thriving property market by focusing on areas with high rental demand and strong growth potential.


Student Accommodation

Student accommodation is a lucrative investment option in Manchester, with over 100,000 students from five major universities, including Manchester Metropolitan University, the University of Salford, and the University of Manchester. The large student population creates a strong demand for suitable housing, making student accommodation an attractive investment opportunity.

In addition, Manchester’s high retention rate of students contributes to the ongoing demand for rental accommodation, further bolstering the buy-to-let market.

Student accommodation investments in Manchester yield higher returns and have lower average purchase prices than residential property. By focusing on areas close to universities and colleges, investors can capitalize on the strong demand for student housing and enjoy the benefits of a profitable investment in Manchester’s thriving property market.


Commercial Properties

Commercial properties in Manchester are attractive due to the city’s thriving business scene and growing economy. The bustling business environment and robust economy of Manchester make commercial properties in the city highly attractive, with a range of real estate options available for sale or rent for business purposes, including offices, stores, and storage facilities.

Commercial property investments in Manchester offer a chance to benefit from the city’s robust economy and expanding business sector. Investors can make the most of Manchester's bustling commercial property market by selecting commercial properties in prime locations and considering factors such as rental income and potential for capital appreciation.


Manchester's Economy and Job Market

BBC Manchester - MediacityUk

Manchester boasts a robust economy and job market, with key industries such as tech, digital, media, advanced manufacturing, and tourism driving job growth and attracting property investors. The city’s economy is worth approximately £75 billion, with its diverse range of industries contributing to its status as one of the UK’s leading cities for job opportunities.

Manchester is home to major corporations like the BBC, ITV, Kellogg's, Siemens, and The Hut Group, further highlighting the city’s thriving business scene and diverse economy.

Job growth in Manchester is projected to be the fastest in the UK, creating a surge in rental and buy-to-let property investment opportunities.

The city’s strong economy and growing job market make it an attractive location for property investment, with the potential for both rental income and capital appreciation. Property investors can tap into the city’s thriving economy by investing in Manchester and capitalising on its strong property market.


Key Industries

Manchester is home to major corporations like:

  • BBC

  • ITV

  • Kelloggs

  • Siemens

  • The Hut Group

These companies and other key industries, such as tech, digital, media, advanced manufacturing, and tourism, are driving job growth and attracting property investors to the city. The technology ecosystem in Manchester alone is estimated to be worth £5 billion, with the industry experiencing rapid growth and employing a total of 100,000 people.

The presence of these major corporations and industries highlights the strength of Manchester’s economy and its diverse range of job opportunities. With its thriving business scene and growing economy, Manchester offers many opportunities for property investors looking to capitalise on the city’s strong property market.


Job Growth

The city’s job growth is expected to be the fastest in the UK, creating a surge in rental and buy-to-let property investment opportunities. Over the next few years, Manchester is anticipated to see an average annual increase in job numbers of 1.8%. The construction industry, in particular, has seen the most rapid growth, with a 38% increase in jobs between 2020 and 2021. This strong job growth is bolstered by the city’s diverse economy, with key industries such as:

  • tech

  • digital

  • media

  • advanced manufacturing

  • tourism

contributing to the increase in job opportunities.

Manchester’s strong job growth and diverse economy make it an attractive location for property investment, with the potential for both rental income and capital appreciation. Property investors can capitalise on the city’s thriving job market and strong property market by investing in Manchester, ensuring a successful and profitable investment.


Infrastructure and Connectivity

Manchester Metro Links

Manchester boasts excellent infrastructure and connectivity, with efficient public transport links and upcoming developments like the HS2 rail link boosting its economic potential. The city boasts highly accessible and efficient public transport services, including train, tram, and bus networks, making it one of the most connected cities in the country.

In addition, the Greater Manchester Combined Authority (GMCA) has set a goal for all journeys in the region to be completed via cycling, walking, or public transport by 2040, further enhancing the city’s connectivity.

The upcoming HS2 rail link, a new high-speed rail network that will enhance the connectivity between Manchester and the rest of the UK, is set to boost the city’s economic potential further. With its excellent infrastructure and connectivity, Manchester presents many opportunities for property investors looking to capitalise on the city’s strong property market and thriving economy.


Public Transport

Manchester’s public transport system is extensive and efficient, with a trams, buses, and trains network. The Metrolink tram system is the largest light rail network in the UK, boasting over 90 stops across Greater Manchester and providing easy access to the city centre and other parts of the region. The bus network is operated by Transport for Greater Manchester (TfGM) and covers the entire city, while the train stations provide access to other cities in the UK.

The convenience, reliability, and affordability of Manchester’s public transportation make it beneficial, making it an excellent mode of transport to navigate within the city and other cities in the UK. The city’s strong public transport network further enhances its attractiveness for property investment, with excellent connectivity contributing to the strong demand for rental properties and buy-to-let investments.


Upcoming Developments

Future developments like the HS2 rail link will boost Manchester’s connectivity and draw additional property investors. The HS2 rail link is a new high-speed rail network that will enhance the connectivity between Manchester and the rest of the UK, providing more efficient journeys, reduced journey times, and increased passenger capacity. The rail link is expected to be completed in the 2030s, further boosting Manchester’s economic potential and making it an even more attractive location for property investment.

In addition to the HS2 rail link, Manchester is also experiencing a range of other developments, such as:

  • The Great Northern Warehouse

  • St Gabriel’s Hall in Ardwick

  • Emergency accommodation in Ardwick

  • Jessiefield in Didsbury

  • Didsbury Technology Park

  • Manchester New Square

  • Deansgate Square

  • St George’s Gardens

  • Victoria Residence

  • Adelphi Wharf

  • The Hallmark

  • Marmalade at the Jam Factory

  • The Mount

  • Hopwood Meadows

  • Vox

  • Chapel Wharf

  • The Green Rooms MediaCityUK

  • The Trilogy

  • The Slate Yard

  • The Residences Manchester

  • Co-op Live arena (scheduled for 2023)

  • A new five-star hotel (scheduled for 2023)

These developments are set to enhance Manchester’s infrastructure and connectivity further, making it an even more desirable location for property investment.


Tips for Successful Property Investment in Manchester

There are a few key tips to remember for a successful investment in Manchester’s property market. First, research the local market and identify high-demand areas with the best potential for capital appreciation and rental income. By focusing on areas with strong rental demand and growth potential, you can maximise your returns and benefit from the city’s thriving property market.

Second, consider the type of property that best suits your investment goals: buy-to-let residential properties, student accommodation, or commercial properties. By selecting the right property type and focusing on high-demand areas, you can make the most of Manchester’s strong property market and enjoy the benefits of a successful investment.

Lastly, collaborating with a reputable property investment company like the Heaton Group can provide essential guidance and support throughout your investment process.

With our knowledge of the Manchester property market and access to exclusive investment opportunities, we can help you navigate the complexities of property investment and ensure you make the most of your investment in Manchester’s thriving property market.


Case Study: Successful Property Investment in Manchester

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To illustrate, consider a case study of Urban Green. Built and developed by the Heaton Group - Urban Green is a stunning new luxury development in one of Manchester's most exciting up-and-coming areas.

Availability in the building started from £180,000 whilst offering 7% to 12% rental yields. This significant return on investment demonstrates the potential for success when investing in Manchester’s property market. Factors contributing to this success include high rental yields, strong demand, and potential for capital appreciation.

This case study showcases the benefits of investing in Manchester’s thriving property market, which offers investors a range of opportunities to capitalise on strong rental demand, high yields, and ongoing growth in house prices and rental prices.

With its diverse economy, excellent transport links, and growing job market, Manchester is an attractive location for property investment, offering the potential for both rental income and capital appreciation.

Book a Free Property Investment Consultation Call


Summary

In conclusion, Manchester’s thriving property market offers many opportunities for property investors looking to capitalise on the city’s strong rental demand, high yields, and potential for capital appreciation.

With its diverse economy, excellent infrastructure and connectivity, and growing job market, Manchester is an attractive location for property investment. By researching the local market, focusing on high-demand areas, and considering the type of property that best suits your investment goals, you can make the most of Manchester’s strong property market and enjoy the benefits of a successful investment.


Frequently Asked Questions

Is buying property in Manchester a good investment?

Manchester is an excellent choice for property investment, with prices 25% lower than the national average and predicted increases in both property prices (19.3%) and rents (21.6%) over the next few years. The thriving rental market, affordable prices and sky-high rental demand make Manchester an attractive option for investors.

Where are the rental hotspots in Manchester?

Salford Quays and Old Trafford, south of Manchester city centre, are popular rental hotspots due to their proximity to the university campuses. Yields in the M14 area exceed 7%, whilst an HMO shared house could yield even more.

Is Manchester or Liverpool better for property investment?

For property investment, Liverpool offers some of the best rental yields in the UK at up to 10%, while Manchester also offers excellent returns with up to 8.49% yields. Both markets have huge potential for future growth, making them both great options for property investment.

What is the average house price in Manchester?

The average house price in Manchester is £234,800, providing a clear snapshot of the local housing market.

What type of property investment opportunities are available in Manchester?

Manchester offers various property investment opportunities, including buy-to-let residential properties, student accommodation, and commercial properties.


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