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17 strong forecasts for real estate in Manchester in 2025

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Authored by the expert who managed and guided the team behind the United Kingdom Property Pack

property investment Manchester

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What will happen in Manchester’s real estate market? Will prices go up or down? Is Manchester still a hotspot for foreign investors? How is the UK government impacting real estate policies and taxes in 2025?

We’re constantly asked these questions because we’re deeply involved in this market. Through our work with estate agents, property developers, and clients who buy properties in Manchester, we’ve gained firsthand insights.

That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.

Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

How this content was created 🔎📝

At Investropa, we study the Manchester real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Manchester. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

When working on this content, we started by gathering insights from these conversations and our own observations. But we didn’t stop there. To make sure our predictions are reliable, we also dug into trusted sources like ONS, Savills, and Knight Frank (among many others).

We are committed to accuracy and authority. Any forecast lacking strong backing from reliable data or expert opinions was set aside. For the forecasts that pass our initial screening (meaning, we consider there is enough solid data to consider them credible), we take things a step further by incorporating insights from trusted real estate blogs, industry publications, and expert analyses. This additional information helps us gain a clearer perspective without compromising reliability. Naturally, we also draw on our own experience and knowledge.

Trustworthiness is key to us. Clear citations are provided throughout this article, allowing you to see exactly where our information comes from. To ensure our explanations are easy to read and engaging, we used an AI-powered writing tool—but only for this specific purpose.

To make the data even more accessible, our design team created custom infographics that highlight key trends and comparisons. We hope you find them helpful.

Finally, every illustration, screenshot, and other non-text media was produced in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Foreign property investment in Manchester will rise as international investors look beyond London

Manchester is becoming a hotspot for foreign property investment, and there are several reasons why this is happening. First, let's talk about property prices. In 2024, the average property cost in London was £523,000, which is quite high compared to Manchester's £234,000. This makes Manchester a more affordable option for investors looking for better returns on their investments.

Another important factor is rental yields. In 2025, Manchester had an average rental yield of 6.53%, which is higher than London's 4.95%. This means investors can earn more from renting out properties in Manchester. Additionally, the average monthly rent in Manchester increased by 12.5% from 2023 to 2025, showing strong growth in rental income.

Moreover, the UK government has been promoting the Northern Powerhouse initiative, which aims to boost economic growth in the North of England, including Manchester. This initiative, along with improved transport links like the HS2 project, is making Manchester more attractive to investors. The HS2 project enhances connectivity between Manchester, London, and other major cities, making it easier for investors to access the city.

Manchester is also gaining a reputation as a business and tech hub. Over the last decade, the city's economy has grown by 39% to £78.7 billion, focusing on sectors like tech, finance, and media. This economic growth is attracting foreign direct investment, with Manchester ranked as the top city in the UK for such investments. The city is recognized for its business friendliness, economic potential, and FDI strategy.

Sources: Heaton Group, Baron Cabot, GM Business Board

2) Property prices in Salford will rise significantly as MediaCityUK expands and gains influence

In recent years, Salford has seen a remarkable increase in property prices, with the average house price more than doubling over the past decade. This trend is expected to continue, especially with the expansion of MediaCityUK, which has become a significant hub for media and creative arts.

The expansion plans for MediaCityUK include doubling its size, adding 800,000 square feet of commercial space, and building 3,000 new homes. This development is set to make MediaCityUK an unrivaled destination, offering more homes, job opportunities, and leisure facilities, which naturally boosts the demand for housing in Salford.

Moreover, the growth of MediaCityUK has attracted a large number of businesses, including major companies like the BBC, ITV, and Google, to relocate to the area. This influx of businesses has created numerous job opportunities, particularly in the media and technology sectors, drawing professionals who are eager to live close to their workplaces.

Salford's proximity to Manchester city center, along with excellent transport links like the Metrolink, makes it an attractive location for residents who can easily commute to work. This convenience, combined with the increased demand for housing from professionals working in MediaCityUK, is driving up property prices.

Additionally, the local council's support for the expansion of MediaCityUK and the positive media coverage highlighting Salford as a property hotspot further contribute to the area's appeal. The demographic shift, with more young professionals and families moving to Salford, also plays a role in the rising property prices.

Sources: Mancunian Matters, CityRise, Alliance Investments, The Luxury Playbook

infographics map property prices Manchester

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) Manchester’s property prices will grow steadily as it stays attractive to investors and residents alike

Manchester's property market is poised for steady growth in prices, driven by a combination of factors that make it an attractive location for both investors and residents. In 2023 and 2024, we saw a consistent rise in property prices, with the average house price reaching £272,000 by November 2024, marking a 4.9% increase from the previous year. This trend is expected to continue, with forecasts suggesting an average house price of £294,000 by the end of 2025, reflecting an annual growth rate of 4%.

The demand for housing in Manchester is fueled by a growing population, which is increasing at an annual rate of 1.8%. This growth is largely due to an influx of young professionals, students, and families, all of whom are contributing to the heightened demand for housing, particularly in the rental market. The city's strong job market and economic growth further bolster this demand, with Manchester's economy growing at a rate of 2.5% annually, outpacing the national average.

Additionally, Manchester's appeal is enhanced by significant infrastructure investments, such as the HS2 rail link, and ongoing regeneration projects in areas like Salford and Oldham. These efforts not only improve the city's infrastructure but also increase its attractiveness as a place to live and work. The presence of major business hubs and the relocation of companies like Amazon and Microsoft to Manchester create new job opportunities, further driving property demand.

Sources: The Luxury Playbook, Alliance Investments, Joseph Mews

4) Manchester’s property prices will keep rising as more businesses and talent move to the city

Manchester's property prices have been on a steady rise, and this trend is expected to continue. As of November 2024, the average house price in Manchester was £272,000, marking a 4.9% increase from the previous year. This growth is projected to persist, with house prices anticipated to rise by an average of 4% annually over the next two years, reaching around £294,000 by the end of 2025.

One of the key reasons for this upward trend is the increasing number of businesses relocating to Manchester. The city has seen a significant boost in foreign direct investment, up more than 72% in the last five years. This influx of businesses is not only enhancing Manchester's economic landscape but also attracting more visitors and investors, further driving demand for property.

Additionally, Manchester's tech and creative sectors are thriving, contributing to a strong economy with a GDP growth rate of 2.5% annually. The city is drawing in young professionals seeking job opportunities, which has directly impacted the demand for housing, especially in the rental market. This demand is further fueled by the high rental yields that attract property investors, with recent studies showing a 65% growth in investments over the past eight years.

Moreover, government investment in infrastructure projects like HS2 and Northern Powerhouse Rail is set to enhance Manchester's connectivity and appeal. These projects are expected to bolster the city's attractiveness, leading to further property price growth. The expansion of Manchester Airport, with a £440 million investment, is also playing a crucial role in transforming the city into a global gateway, creating thousands of jobs and unlocking economic value.

Sources: The Luxury Playbook, CityRise, Manchester Airport Media Centre

5) City center rents will rise slightly as more people want to live in urban areas

Rents in Manchester's city center are on the rise as more people are drawn to urban living.

In 2023, prime rent in Manchester hit £43 per square foot, showing an 18% increase over the past five years. This trend is expected to continue, with projections suggesting it could reach £47 per square foot by 2027. This steady climb in rental prices highlights the strong demand for city center properties.

Manchester's population is also growing, with an expected 40,000 more people choosing to live in the city center by 2026. This surge is largely driven by young professionals and students who prefer the convenience and lifestyle of city living, adding to the demand for housing.

The limited availability of new housing developments is another factor. While there's a significant development pipeline, much of it is speculative and likely to be quickly occupied. This means there's a shortage of available housing options, making city center living even more appealing.

Manchester's economic growth and job opportunities further enhance its attractiveness. The city's vibrant economy and career prospects are drawing more people to the area, contributing to the rising demand for urban housing.

Sources: Savills Research, Manchester City Council, Knight Frank Research

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buying property foreigner Manchester

6) Rents in Manchester will rise as more students and young professionals move to the city

Rents in Manchester are climbing as the city draws in more students and young professionals.

In November 2024, the average rent in Manchester hit £1,279, which is an 11.4% jump from the previous year. This trend isn't slowing down, with predictions of a 4% rise in 2025, especially in areas where rents are still relatively affordable. Manchester's charm as a major educational hub is a big part of this story. The city is a magnet for students, boosting its population and driving up rental demand.

Manchester's business-friendly vibe and affordability are also pulling in young professionals, particularly those moving from bigger cities like Boston, Worcester, and New York City. The tech and creative industries are booming here, attracting young, skilled workers who are eager to be part of the action. This influx of talent is pushing the rental market to new heights.

From July 2023 to July 2024, Manchester saw a 12.5% increase in average rent, outpacing the 9.5% rise across the North West. This growth is a testament to the city's dynamic economy and its appeal to a younger crowd. The city's vibrant culture, coupled with its expanding job market, makes it a hot spot for those looking to start or advance their careers.

As more people flock to Manchester, the demand for housing continues to rise, putting pressure on the rental market. The city's ongoing development projects and infrastructure improvements are also contributing to this upward trend. With more amenities and better connectivity, Manchester is becoming an even more attractive place to live.

For anyone considering buying property in Manchester, understanding these dynamics is crucial. The city's growth shows no signs of slowing, making it a promising location for investment. As Manchester continues to evolve, it remains a top choice for students and young professionals alike.

Sources: ONS, NHBR, Rothmore Property

7) Rents in Manchester will rise steadily as the city becomes more attractive for living and working

Manchester's rental market has been on a steady rise, and several factors have contributed to this trend. One of the main reasons is the increasing demand for housing due to population growth, particularly from young professionals who are drawn to the lifestyle benefits of city centre living. This demographic shift has significantly boosted the demand for rental properties in the city.

Another key factor is the influx of businesses relocating to Manchester. Major companies like the BBC, ITV, HSBC, Google, and Microsoft have set up offices in the city, and this trend is expected to continue with global giants like Amazon considering Manchester as a strategic location. This business migration has not only increased employment rates but also made the city an attractive place for people to work, further driving the demand for rental properties.

Additionally, significant investment in infrastructure and public transport has played a crucial role in enhancing Manchester's appeal. The approval of £1.31 million in funding for high-speed rail and Northern Powerhouse Rail proposals aims to improve connectivity and promote sustainable living. This development supports the ongoing growth of the Bee Network, which is designed to encourage economic growth and improve the overall quality of life in the city.

Moreover, the rising property prices in Manchester have made buying less affordable, pushing more people towards renting. With the average house price reaching £272,000 in 2023 and expected to rise further, many individuals find renting a more viable option. This shift has contributed to the low rental vacancy rates and the significant upswing in rental prices, with a 12.5% increase in average rent from July 2023 to July 2024.

Sources: The Business Desk, Alliance Investments, Global Railway Review, Rothmore Property, The Luxury Playbook

8) Foreign investment in Manchester's residential properties will increase as the city's global profile rises

Manchester has been gaining significant attention from foreign investors, especially in the residential property market. In the first half of 2024, it was ranked third in the Colliers Top UK Residential Investment Cities, only behind Edinburgh and Glasgow, and ahead of London. This ranking highlights the growing interest from international investors in Manchester's real estate sector.

The city's economy has been thriving, with a steady GDP growth rate of 2.5% annually. Key industries such as digital technology, finance, healthcare, and education are flourishing, making Manchester an attractive destination for foreign investors. This economic strength is a major draw for those looking to invest in residential properties.

Manchester's transport infrastructure is also expanding, with projects like the HS2 high-speed rail and the £1 billion transformation of Manchester Airport. These developments are improving connectivity and enhancing the quality of life, which can further attract foreign investment. Additionally, the city's cultural and business profile is internationally recognized, offering a vibrant culture and a more affordable cost of living compared to London.

Sources: Place North West, The Luxury Playbook, Savills

infographics rental yields citiesManchester

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) More foreign buyers will invest in Manchester’s housing market as the city becomes more internationally recognized

Foreign buyers are increasingly targeting Manchester's residential market as the city gains international recognition for several compelling reasons.

First, Manchester's property prices have been rising steadily. In 2024, the average house price in Manchester was £272,000, marking a 4.9% increase from the previous year. This growth rate is higher than the national average, making Manchester an attractive option compared to more expensive cities like London. Additionally, suburban areas such as Didsbury and Chorlton have seen price increases of up to 5.2% year-on-year, indicating strong demand and potential for investment growth.

Second, Manchester has seen significant investment in its infrastructure and transport links. The city has approved £1.31 million in funding to enhance its high-speed rail and Northern Powerhouse Rail proposals, which aim to improve connectivity and promote sustainable living. This investment is part of a larger £1.07 billion City Region Sustainable Transport Settlement, which supports economic growth and creates a more connected society.

Third, Manchester's vibrant student population and thriving tech and digital sectors attract international talent, further boosting its appeal. The city hosts over 100,000 students, many of whom stay after graduation, increasing demand for rental properties. Additionally, Manchester's economy is driven by key industries such as digital technology and finance, attracting foreign buyers interested in a dynamic and growing market.

Sources: The Luxury Playbook, Global Railway Review, Advantage Investment

10) Young professionals in Manchester will be drawn to co-living spaces for affordable, community-focused housing options

In recent years, Manchester has seen a significant rise in demand for affordable housing, especially among young professionals. This is largely due to the city's booming job market and increasing population, which have made it a hub for young talent. However, the traditional housing market has struggled to keep up, with house prices rising by 7-10% annually, making it difficult for many to afford conventional living arrangements.

Co-living spaces have emerged as a popular solution to this problem. These spaces offer a more affordable and flexible living option, which is particularly appealing to millennials and Gen Z. Surveys have shown that these groups prefer community-oriented living, where they can easily network and connect with like-minded individuals. The high satisfaction rates among co-living residents further highlight the appeal of this lifestyle.

Moreover, the growth of co-living spaces is not just a local trend but a global one. With around 6,500 co-living units under construction across the UK, including significant developments in Manchester, it's clear that this model is gaining traction. The support from local government initiatives, like the Affordable Homes Programme, also underscores the recognition of co-living as a viable solution to housing shortages.

Sources: Knight Frank Research, Scott Dylan, Green Ocean Property Management, Savills, North Property Group

11) Manchester’s home prices will rise slightly as the city improves its infrastructure

Manchester's residential real estate market is expected to see a slight price increase as the city continues to develop its infrastructure. This is largely due to the city's growing population, which is increasing at an annual rate of 1.8%. More people, especially young professionals and families, are moving to Manchester, attracted by job opportunities and the city's vibrant culture.

Another key factor is the significant investment in public transportation projects. Improvements to the Metrolink tram system and the development of the HS2 high-speed rail are making more neighborhoods accessible and attractive to potential buyers. Additionally, the £1 billion transformation of Manchester Airport is expected to further boost property demand.

Moreover, the development of new residential and commercial areas, such as the £4 billion Victoria North project, is creating thousands of new homes. This not only enhances the city's appeal but also increases the demand for properties. Areas like Ancoats have become highly sought-after, especially among young professionals and creatives.

Sources: The Luxury Playbook, Joseph Mews, Manchester Homebuyer Group

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buying property foreigner Manchester

12) Demand for student accommodation will rise as Manchester's student population grows

The city's growing student population is having a noticeable impact on the rental market, particularly in terms of increasing demand for student accommodation. In the past few years, we've seen a significant rise in enrollment numbers at Manchester's universities. For instance, during the 2022/23 academic year, there were approximately 123,950 students enrolled in Greater Manchester, with the University of Manchester and Manchester Metropolitan University hosting large numbers of these students.

Moreover, the international student population has been on the rise. The University of Manchester alone admitted over 18,000 international students in 2024, a substantial increase from previous years. This influx of students from abroad contributes to the growing demand for housing, as these students often require accommodation close to their campuses.

Reports of student housing shortages further highlight the pressure on the rental market. Preleasing rates for the 2024-25 school year have surged, with a significant percentage of beds already preleased by the end of 2024. This trend indicates a shortage of available student housing, pushing demand even higher.

Sources: Statista, Manchester Mill, Multifamily Executive

13) Rental yields in the city will gradually rise as more people opt to rent instead of buy

In recent years, Manchester has seen a significant rise in rental demand. In 2023, rental prices grew by 13%, and this trend has continued, showing strong demand for rental properties. This demand is partly driven by Manchester's growing population, which is expected to increase by 30,000 over the next six years, further boosting tenant demand and rental yields.

Another factor contributing to the increase in rental yields is the city's expanding job market. Manchester has become one of the fastest-growing cities in the UK, attracting substantial venture capital investment. This economic growth has created numerous job opportunities, drawing more people to the city who prefer renting over buying.

Additionally, property prices in Manchester have made buying less affordable for many. With the average property price at £230,967 and expected to rise further, renting remains a more accessible option for many residents. The average salary in Manchester is lower than in London, making renting a more financially viable choice for many.

Moreover, lifestyle changes post-pandemic have influenced housing preferences, with many people opting for the flexibility and affordability of renting. This trend is particularly evident among younger demographics who favor urban living and the flexibility it offers.

Sources: Joseph Mews, Alliance Investments, Loebsack Brownlee

14) Property demand near the University of Manchester will rise as the student population grows

The area around the University of Manchester is experiencing a surge in property demand, primarily due to a growing student population. In the past, specifically during the 2024-2025 academic year, the university saw a 17% increase in enrollment, marking the largest incoming class in four years. This rise in student numbers naturally leads to a higher demand for housing and amenities nearby.

Moreover, Manchester has been grappling with a significant shortage of student accommodation, with a deficit of 23,186 beds reported in 2023. This shortage is further intensified by the limited availability of Purpose-Built Student Accommodation (PBSA) and the continuous influx of students. As a result, the demand for rental properties in the university's vicinity is expected to grow, with rental values projected to increase by an average of 4% annually until 2028.

Additionally, the University of Manchester has been proactive in attracting more students by introducing new academic programs, such as nursing, esports management, and a Master of Business Administration. These programs have successfully drawn more students to the area, further boosting the demand for properties. Investors have also taken note of the severe accommodation shortage, leading to approved plans for approximately 1,500 new student accommodations across the city.

Sources: Manchester University News, Amber Student, Joseph Mews

statistics infographics real estate market Manchester

We have made this infographic to give you a quick and clear snapshot of the property market in the UK. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

15) City center rental yields will stay stable as high demand offsets rising property prices

Rental yields in Manchester's city center are expected to remain stable due to a balance between high demand and increasing property prices. The city has seen a significant rise in rental demand, with the average monthly rent reaching around £1,103 in 2024, an 8% increase from the previous year. This demand is largely driven by young professionals, students, and expatriates who are attracted to the vibrant lifestyle and cultural attractions of the city center.

Manchester's population growth and job creation are key factors contributing to this high demand. The city is leading in economic performance, particularly in job creation, with over 25,000 new jobs expected in the next three years. This economic growth, coupled with ongoing regeneration projects, enhances the city's appeal, drawing more people to live and work in the area.

Despite rising property prices, rental yields have historically remained stable in Manchester. As of December 2022, the average rental yield was around 6.5%, with some areas achieving yields as high as 9.4%. This stability is attributed to the limited housing supply in the city center, which keeps demand high. Additionally, the Manchester City Council's plans for urban development and housing, including the development of affordable housing, help maintain this balance.

Sources: CityRise, Time Recruitment, Housing Today, The Luxury Playbook

16) Rental yields in Manchester will rise as young professionals continue to drive strong demand for rentals

Rental yields in Manchester have been on an upward trend, and this is expected to continue as demand for rental properties remains strong among young professionals. In the past, specifically in 2023, rental price growth in Manchester reached 13%, showing a sustained increase in demand. This trend was further supported by the fact that average rents rose by about 8% due to strong demand and limited supply.

One of the key reasons for this strong demand is the increasing population of young professionals in the city. Manchester's population is predicted to grow by 30,000 over the next six years, largely driven by young professionals and students. Areas like the Northern Quarter and Ancoats are particularly attractive to this demographic because of their vibrant culture and job opportunities.

Moreover, Manchester has seen significant job creation through regeneration projects like NOMA and Spinningfields, which have collectively added thousands of jobs. The city's status as a key media hub, thanks to MediaCity, also attracts many young professionals seeking employment in the creative and media sectors.

Despite new home construction reaching 5,545 units in 2022, the supply of rental properties remains constrained, contributing to rising rents. The number of properties available to rent hit its lowest rate on record in Q3 2022, with just 360 units available, further driving up rental prices.

Young professionals are drawn to Manchester's cosmopolitan lifestyle, with everything within walking distance, which appeals to their desire for dynamic urban living. This preference for urban living among young professionals continues to fuel demand for rental properties.

Historically, Manchester properties have generated an average rental yield of 6.5%, significantly higher than the national average of 4.75%. This trend is expected to continue due to sustained demand from a diverse rental market that includes recent graduates, young professionals, and families.

Sources: Joseph Mews, Place North West, Victoria Riverside, Select Property, Flambard Williams

17) City center properties will stay in high demand as young professionals are drawn to urban living

Properties in the city center will maintain high demand as urban living continues to attract young professionals for several reasons.

First, the rising population of young professionals in Manchester is a key factor. In 2023, the city had an estimated 618,800 residents, with the city center alone nearing 100,000 people. This growth is fueled by over 100,000 students from four major universities, many of whom choose to stay after graduation, increasing the demand for rental properties.

Second, Manchester's strong economic growth and increasing employment opportunities make it an attractive place for young professionals. The city is expected to see 65,000 new jobs emerge over the next few years, particularly in sectors like professional, legal, financial, digital, and tech industries. This economic vitality draws more people to the city center, where many of these jobs are located.

Additionally, the preference for urban living among millennials and Gen Z is a significant trend. Many young professionals opt for city center properties due to their proximity to cultural and entertainment amenities. The city center is home to an eclectic mix of independent shops, cafes, and music venues, making it a vibrant and attractive area for this demographic.

Sources: The Luxury Playbook, Manchester City Council, Joseph Mews

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.