Authored by the expert who managed and guided the team behind the United Kingdom Property Pack
Yes, the analysis of Manchester's property market is included in our pack
Why is Manchester emerging as a prime location for property investment in 2025? Is it the impressive rental yields, the city's vibrant cultural scene, or the relative affordability compared to other UK cities? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Manchester's property market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Manchester’s urban regeneration projects boost property values in revitalized areas
Manchester's urban regeneration projects are boosting property values in revitalized areas.
Thanks to these projects, the average house price in Manchester has climbed to £272,000 by the end of 2024, showing a 4.9% rise from the previous year. This trend is expected to keep going, with a 4% annual increase projected over the next two years.
One big reason for this growth is the hefty investment in infrastructure and public transport. Greater Manchester is putting £1.31 million into high-speed rail and Northern Powerhouse Rail plans to boost connectivity and economic growth. The Salford Central Enhancements Scheme, with its £4.4 million funding, will modernize the station, making it more accessible and efficient for passengers.
Real estate agencies are optimistic about Manchester's property market, predicting a 19.3% increase in property prices over the next five years. This makes the city a hot spot for property investors, as regeneration efforts have turned neighborhoods into vibrant urban living spaces.
The Northern Gateway Project is a standout example of successful urban regeneration, with an initial £185 million investment aimed at developing thousands of homes and new public spaces. This initiative has made areas north of the city center more appealing to both residents and investors.
Sources: The Luxury Playbook, Global Railway Review, Aspen Woolf, GIS User
2) In Manchester, you’ll find more affordable property prices than in London, making it easier to invest
Manchester's property prices are significantly lower than London's, making it a great spot for investors.
In July 2024, the average property in Manchester was priced at £234,000, while in London, it was a hefty £523,000. This price difference means Manchester is a more budget-friendly choice for those looking to dive into the property market.
Investors in Manchester also enjoy higher rental yields, averaging 6.5% in 2024, compared to London's 4.95%. This is especially true in areas bustling with students, where rental demand is high.
Living in Manchester is cheaper than in London, which attracts more tenants and keeps rental demand strong. This affordability supports better rental yields for property owners.
Manchester is buzzing with infrastructure projects and urban regeneration, boosting its growth potential. These developments make it a promising long-term investment destination.
With all these factors, Manchester offers a more accessible entry point for property investors compared to London.
Sources: UniAcco, CIA Landlords, GOV.UK, Heaton Group
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UK. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) The Northern Powerhouse initiative drives economic growth, boosting property demand
The Northern Powerhouse initiative has significantly boosted economic growth in cities like Manchester.
Thanks to this initiative, there's been a surge in infrastructure projects, including tram and airport upgrades, which have improved transport links and attracted more investors. This makes getting around easier and more efficient, drawing in people and businesses alike.
Job opportunities are on the rise, with employment rates climbing steadily. From 2017 to 2021, the North saw an 18% increase in jobs from inward investment, which means more people are moving to the area for work. Naturally, this has led to a higher demand for housing as people settle in for these new opportunities.
Foreign direct investment (FDI) has also seen a remarkable increase, surging by 72% over the past five years. This influx of capital is not just a number; it translates into real growth, attracting more businesses and individuals to the region.
With more businesses setting up shop, there's a growing need for both residential and commercial properties. This demand is a direct result of the economic activity spurred by the Northern Powerhouse, making it a hot spot for property buyers.
For anyone considering buying property in the North, these developments mean more opportunities and a vibrant market. The region is becoming a hub of activity, thanks to strategic investments and a focus on growth.
Sources: Northern Powerhouse Partnership, Rothmore Property, UK Government
4) Manchester’s location makes it a key business and travel hub in the UK
Manchester is a key player in the UK's business and travel scene thanks to its strategic location.
Hop on a high-speed train from London, and you'll be in Manchester in just over two hours, making it one of the fastest routes in the country. This convenience is a big draw for both business travelers and tourists.
Then there's Manchester Airport, a major gateway with over 30 million passengers passing through annually. It connects to more than 200 destinations, reinforcing Manchester's status as a travel hub.
Infrastructure projects like "Network North" are in the works to boost connectivity between the north and the Midlands. Even with shifts in high-speed rail plans, Manchester is set to stay well-connected.
On the business front, Manchester is buzzing with multinational companies and is recognized as a leading digital and tech hub. The city's universities attract international students, adding to the local economy and tech scene.
With all these elements, Manchester is not just a place to pass through; it's a city where business and travel thrive together.
Sources: Rochdale Online, Manchester Airport Media Centre, Rail Ninja
5) Manchester’s varied neighborhoods provide investment options for every budget
Manchester's neighborhoods offer diverse investment opportunities for every budget.
Over the last 20 years, property prices in Manchester have soared by 330%, showing resilience and growth even after the pandemic. This makes the city a hot spot for property investors looking for a strong market.
In 2023, the M14 postcode, home to places like Platt Fields Park and Fallowfield, boasted rental yields of 9.5%, far above the national average. This is a golden opportunity for those eyeing rental properties with promising returns. Plus, Manchester is the UK's third-largest student market, which means there's a big demand for student housing.
Neighborhoods like Ancoats and the Northern Quarter have undergone major makeovers, turning into lively areas that catch the eye of investors. These regeneration projects emphasize sustainable urban living, drawing in both residents and businesses. The city's growing population, along with an influx of young professionals and families, keeps the property market buzzing.
Sources: Aspen Woolf, Amber Student
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6) Manchester’s focus on smart city tech ensures your property investment is future-proof
Manchester is making waves with its smart city technology, thanks to the CityVerve project.
With a hefty £10 million investment, CityVerve is using Internet of Things (IoT) technologies to boost city services. This means Manchester is not just safer but also more efficient, integrating IoT into health, transport, and environmental sectors to improve life quality and cut down on environmental impact.
These tech advancements are pushing property values up. Experts predict a 19.3% rise in house prices by 2028, making Manchester a top spot for property growth in the UK. Buyers are increasingly drawn to homes with smart features, adding to the demand.
CityVerve is also showing how smart tech can enhance public services and safety. With real-time data and better traffic management, the city is becoming more efficient and secure, attracting more residents and ensuring real estate investments are future-proof.
Manchester's commitment to smart city tech is a game-changer for property investors. The city's focus on innovation promises to keep real estate investments aligned with evolving technological trends.
Sources: The CityVerve Project, Manchester Property Price Forecast 2025
7) Manchester's diverse economy helps keep property values stable
Manchester's economy is a safety net for property values thanks to its diverse industry sectors.
With a mix of finance, technology, and media, the city doesn't lean on just one industry. This diversity means that if one sector stumbles, others can step in to keep things steady, ensuring property values remain stable.
Historically, Manchester has enjoyed a GDP growth rate of 2.5% annually, outpacing the national average. This consistent growth highlights a robust economy that can support property values even when times are tough.
Manchester's unemployment rate has been lower than the North West average, which means a stable job market. This stability further cushions property values from market volatility.
Infrastructure investments, like the HS2 rail link, are game-changers. They improve connectivity, attract businesses, and draw in residents, boosting economic activity and property demand.
With a growing population fueled by natural growth and migration, the demand for housing is on the rise, helping to stabilize or even increase property values.
Sources: The Business Desk, ONS, The Luxury Playbook
8) Manchester’s green spaces and parks make it a great choice for families looking for a better quality of life
Manchester is becoming a top choice for families thanks to its green initiatives and parks.
The city has made a big push towards sustainability by investing in green infrastructure. This includes retrofitting homes and public buildings to use renewable energy and planting over 750,000 trees. These efforts not only help the environment but also create a healthier living space for families.
Manchester's parks and green spaces have seen a significant increase, with a 30% rise in park usage during 2020 and early 2021. This uptick highlights how crucial these spaces have become, especially during tough times like the pandemic. The city has designated over 6,515 Local Green Spaces, covering more than 30,000 acres, offering plenty of room for families to enjoy the outdoors.
Families are increasingly drawn to areas near green spaces, with domestic gardens making up a large part of Manchester's landscape. This trend is evident in the growing demand for properties near parks, as families seek the benefits of living close to nature.
Studies show that green spaces can boost property values, making neighborhoods more desirable. This is a key factor for families considering a move, as they look for areas that offer both quality of life and a good investment.
Sources: Greater Manchester Environment Plan, Manchester Green and Blue Infrastructure Strategy, CPRE Research on Local Green Spaces
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) Manchester’s universities attract many students, making it easy to rent out properties
Manchester's universities are a magnet for students, creating a huge demand for rental properties in the city.
In the 2022/23 academic year, the University of Manchester had 46,860 students enrolled, while Manchester Metropolitan University had 39,095 students. This influx isn't new; since 2016/17, the student population in Greater Manchester has grown by about 23,000. Areas like Fallowfield and Rusholme are buzzing with students, leading to low vacancy rates and making these neighborhoods prime spots for property investment.
Rental prices near the universities have climbed, driven by the demand for student housing. Many students opt for off-campus living, choosing between purpose-built student accommodation and Houses in Multiple Occupation. This preference ensures a steady rental income for property owners, making it a lucrative market.
Manchester is grappling with a shortage of 23,186 student beds, catching the eye of investors. The limited supply of new developments makes the real estate market highly competitive. As the universities expand their programs, even more students are expected, further boosting the demand for rentals.
Sources: Statista, The Business Desk, Flambard Williams
10) Manchester’s excellent public transport means you don’t need a car to get around
Manchester's public transport network is incredibly strong, making it easy for residents to commute without needing a car.
With the Bee Network, Manchester offers an integrated public transport system that covers a vast area with 577 bus routes and 1,600 vehicles. This means you have plenty of options to get around the city without a car. Whether you're heading to work or exploring the city, the extensive coverage ensures you're well-connected.
What's great about the Bee Network is its seamless integration of buses, trams, and trains. This setup provides multiple commuting options, making public transport a convenient choice. You can easily switch between different modes of transport depending on your needs, which is a huge plus for flexibility.
The city isn't just resting on its laurels; it's investing heavily in public transport infrastructure. With funding approved for high-speed rail and other enhancements, Manchester aims to boost the performance and resilience of its transport system. This means a better experience for you as a commuter and supports the city's economic and environmental goals.
These investments are not just about getting you from point A to B; they're about enhancing the overall customer experience. The improvements are designed to make your commute smoother and more reliable, which is a win-win for everyone involved.
So, if you're considering buying property in Manchester, know that the city's strong public transport network makes it easy for residents to commute without cars. This is a major advantage, especially if you're looking to reduce your carbon footprint or simply want the convenience of not having to drive everywhere.
Sources: Bus News, Global Railway Review, Public Sector Executive
11) Manchester's infrastructure projects, like the HS2 rail link, will boost connectivity for you
The HS2 rail link is set to transform travel by making it faster and easier to move between major UK cities.
Imagine zipping between cities without the usual hassle; HS2 promises to ease congestion on current rail lines, making life simpler for commuters and travelers. It's not just about speed; it's about making your journey smoother and more efficient.
HS2 isn't just a travel upgrade; it's a step towards a greener future. By providing a lower-carbon alternative to flying or driving, it aligns with the UK's sustainability goals. This means less environmental impact and a more eco-friendly way to get around.
Manchester City Council is all in on HS2, seeing it as a catalyst for economic growth. They believe it will boost transport connections across northern England, opening up new opportunities for businesses and residents alike.
Media outlets are buzzing about HS2's perks, like cutting down travel times and upping convenience. This kind of positive press can spark public interest and attract investment to areas linked by HS2, making them more appealing to potential property buyers.
Manchester's urban plans are getting a facelift with HS2 in mind. Around the new stations, expect to see new jobs, homes, and public spaces popping up, breathing new life into these areas and making them vibrant places to live and work.
Sources: HS2 Project Update, High-Speed Rail for Britain, Manchester City Council
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12) Manchester’s international airport boosts property value by improving global business connections
Manchester's international airport is a major gateway to the world, boosting property values in the city.
In 2024, the airport celebrated a milestone by serving 30 million passengers in just 12 months, a 10.5% increase from September 2023. This growth shows how the airport is becoming a crucial global hub. With over 200 destinations, it's the most connected airport outside London, drawing in both businesses and tourists. This connectivity makes Manchester an attractive place to live and work.
The airport's strong performance during peak travel seasons, with record-breaking passenger numbers, highlights its role in facilitating global business connections. The ongoing £1.3 billion Manchester Airport Transformation Programme, including a £440 million investment in terminal transformation, shows a commitment to turning the airport into a world-class international gateway.
These infrastructure improvements not only make travel smoother but also boost the city's economy. The airport's expansion and modernization efforts are a big draw for international businesses looking to set up shop in Manchester. This, in turn, enhances the city's property market, making it a hot spot for potential buyers.
As the airport continues to grow, it plays a vital role in Manchester's development, attracting more global attention and investment. The city's international airport is a key factor in its rising property values, offering a unique advantage for those considering buying property here.
Sources: MAG Airports Media Centre, Buro Happold, MAG Airports Media Centre
13) With more co-working spaces, Manchester is perfect for remote work lifestyles
Manchester is buzzing with more co-working spaces than ever, making it a hotspot for remote work.
Take Colony, for example; they're adding two new locations by 2025, cementing their status as a leading provider of flexible workspaces. This move highlights the city's growing appetite for adaptable office solutions.
Why the surge? It's all about the shift to hybrid work models. Businesses are keen to keep up with changing market conditions and employee preferences, and Manchester's co-working spaces offer the flexibility they crave.
In 2023, a whopping 44% of UK workers were working remotely, many in hybrid setups. Compare that to pre-COVID times when just 4.7% worked from home, and you see why co-working spaces are booming.
These spaces aren't just about desks and Wi-Fi; they provide the infrastructure and community remote workers need. It's a win-win for both businesses and employees looking for flexibility.
Manchester's co-working scene is a testament to the city's adaptability, offering agility and community in a rapidly changing work environment.
Sources: Coworking Cafe, Turner Business Centre, Standout CV
14) Eco-conscious investors are drawn to the city’s commitment to sustainable urban development
Manchester is now a hotspot for eco-friendly property investments.
The city is buzzing with green infrastructure projects, making it a magnet for those who care about the environment. Many properties now come with energy-efficient features like solar panels and smart heating systems. These aren't just good for the planet; they also cut down on energy use and slash utility bills, which is a big win for eco-conscious tenants.
Investing in these green neighborhoods isn't just about feeling good; it's financially smart. Properties here often fetch higher rents and attract tenants who stay longer. Plus, the government sweetens the deal with incentives and tax breaks for sustainable building, boosting your returns.
Manchester's Climate Change Framework is ambitious, aiming to slash emissions and ramp up renewable energy. This aligns perfectly with global sustainability goals, making the city a top pick for investors who care about the planet.
Thanks to these efforts, Manchester is climbing the ranks in global sustainability indices. This makes it a prime spot for investors who want to put their money where their values are.
Sources: Sustainable Living: The Rise of Eco-Friendly Properties in Manchester, 2022 Update to Manchester Climate Change Framework
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.