Why You Should Invest in Manchester Property

When it comes to property investment in the UK, Manchester has emerged as a strong contender against the traditional heavyweight, London.

Manchester has long been known as the heart of the North, but in recent years, it has also become a property investment powerhouse. Here’s 5 reasons why you should consider investing in Manchester.

1) Strong Economic Growth and Job Opportunities

Manchester is the second-largest city-region economy after London, 80% of FTSE 100 companies have a presence in the city. This remarkable statistic highlights Manchester's role as a hub for large multinational corporations, offering unparalleled access to talent, infrastructure, and connectivity. Major players like Amazon, BBC, Deloitte, Siemens, and Kellogg's are among the many FTSE 100 companies that have established offices in Manchester. This economic activity attracts a young, professional workforce, driving demand for quality rental and residential properties.

GVA Comparison of 5 major UK cities outside of London

2) Manchester Property return higher rental yields

Manchester offers higher rental yields and better long-term capital appreciation. The lower entry cost also allows investors to diversify their portfolios, the capital required to purchase a single property in London could instead be used to acquire multiple properties in Manchester, maximizing potential rental income and returns. As of late 2024, the average rental yield in Manchester stands at around 6.5%, while London averages only about 4%

Graph showing annual rent increase in % per year from 2018 to 2024 in Manchester (ONS)

3) Well connected

Manchester Airport is a vital aviation hub for the North. In 2024, it welcomed 30.1 million passengers, making it the third-busiest airport in the UK after Heathrow and Gatwick. The airport offers over 200 destinations worldwide, including unique long-haul routes to cities like Houston and Singapore. With two full-length runways, it efficiently handles a high volume of flights, a rarity outside London 

4) More affordable barrier to entry

The average property price in Manchester is approximately £253,000, compared to a staggering £678,000 in London, With projections indicating that Manchester's population could grow by 10% by 2025 the demand for properties will rise correspondingly, which in turn will increase house prices and rental demand

5) Manchester New build properties Redefining Urban Living

Manchester is experiencing a surge in new build property developments that are significantly transforming neighborhoods. Areas like Salford and Castlefield are evolving into vibrant communities filled with stylish apartments, Houses and essential amenities, making them highly desirable due to their proximity to the city center.

Investing in new builds, including skyscrapers, is a smart choice as they offer modern living spaces that attract a growing population. The demand for contemporary housing ensures strong rental yields and potential for capital appreciation. With plentiful options available, these developments present excellent opportunities for investors looking to capitalize on Manchester's dynamic growth.

Conclusion

Manchester is more than just a city, it’s an opportunity.

With its robust economy, vibrant lifestyle, and booming property market, it’s no surprise that Manchester consistently ranks as one of the best places to invest in the UK. Whether you’re looking for strong rental yields, long-term capital growth, or a mix of both, Manchester ticks all the boxes.

Ready to streamline your property investment journey in Manchester? Contact us at RE/MAX North Manchester today and let our local experts guide you every step of the way.