Considered to be U.K.’s “second city” in terms of population, culture, and economy, Manchester is experiencing an economic boost thanks to the growing number of professionals migrating from the Capital.
JLL predicts an average annual rental growth of at least 4.1% over the next 5 years. And at nearly 7% rental yield for buy-to-let properties, Manchester along with Salford has the highest return for buy-to-let properties in the U.K.
Did you know London’s population is shrinking at rates never before seen in the last decade?
A recent official figure reveals that 292,000 people left the Capital up to the middle of 2016.
It is the highest number since 2006 and up 14% higher 10 years earlier.
Meanwhile, Reach PLC’s Data Unit shows that 10,200 people left London to move to Greater Manchester last year.
Stephen Clarke, a senior economic analyst for Resolution Foundation, explains why:
“London is a net exporter of people to the rest of the UK. This is likely due to high housing costs with figures suggesting that people are leaving London when they have children and want to put down roots, a struggle given the property prices in the capital.” (Source: Manchester Evening News)
Traditionally, cities in the Northwest suffer from the “brain drain” caused by London’s employment opportunities.
But because of the Capital’s expensive property prices, exorbitant rental fees, and worsening pollution, most Londoners are starting to see the potential of living elsewhere.
And one of the cities that benefit from this mass exodus is Manchester.
Second City No More?
Considered to be U.K.’s “second city” in terms of population, culture, and economy, Manchester is experiencing an economic boost thanks to the growing number of professionals migrating from the Capital.
In its 2016 article, Select Property Group explains:
“Manchester, a city with a population rising faster than anywhere outside of London, is also the UK’s fastest growing Generation Y city. 60% more 25 to 29-year-olds live in Manchester than anywhere else in the country, while Generation Y accounts for 22% of the city’s total population, almost four times the national average.”
Manchester enjoys a high graduate retention rate of 70%, with young professionals attracted to its booming job market and city-center living.
Nick Whitten, JLL’s Director of U.K. Research, explains, “You can see the reasons. They already know they enjoy living there and there are plentiful employment opportunities and affordable housing.”
“More new businesses are coming to the city than anywhere else in the UK, outside London. Many of them are first-time investors in the city, which is a reflection of Manchester’s growing profile.” (Source: Telegraph)
Among these well-known firms include Co-Operative Group, Royal Bank of Scotland, AstraZeneca, BBC, HSBC, RBS, and ITV at MediaCity UK.
And these factors have contributed to the growth of the city’s real property market.
In fact, Manchester is outpacing London in real estate growth.
According to the Nationwide Building Society’s House Price Index, the Capital’s house prices dropped 1% year-over-year.
On the other hand, Manchester has seen steady growth since 2015 at 7% year-over-year as per analysis firm Hometrack.
Meanwhile, global real estate firm JLL predicts an average annual rental growth of at least 4.1% over the next 5 years. And at nearly 7% rental yield for buy-to-let properties, Manchester along with Salford has the highest return for buy-to-let properties in the U.K.
Best Property to Invest In Manchester?
For overseas buyers who wish to invest in Manchester, there’s no better place to start than Manchester New Square. The development is comprised of three 12-15 story buildings.
Each building has its own restaurants, retailers, and secure underground parking. Residents have access to facilities like a 24-hour concierge, private gym, and a lounge.
The one-, two- and three-bedroom apartments at Manchester New Square is more spacious than other apartments in the city.
For example, a 1-bedroom apartment starts at 661 sq. ft. While a 3-bedroom unit can go up to almost 1,200 sq. ft.
Manchester New Square is only 25 minutes away from Manchester Airport via dedicated express tram, bus, and train services.
Piccadilly Train Station is just a five-minute walk from the building, while the central Metrolink and bus stations are just a stone’s throw away.
The apartments are getting strong interests from young professionals, investors, retirees, and parents of students of nearby universities.
In fact, as of this writing, almost 40% of the apartment is sold.
So if you want to take advantage of this fantastic investment opportunity, please contact JLL International Residential directly at +65 6220 3888 or internationalresi@ap.jll.com
Download Research: Why Manchester - Key Facts & Figures
