The City of Manchester is becoming a major central hub for economic activity across the UK. There is no doubt that Manchester is becoming central to the growth of the northern economy and is expected to contribute heavily to the relative stability of the UK even after Brexit. Manchester is home to over 600,000 residents and is becoming a major entrepreneurship hub. This is because the number of active businesses in the city has more than tripled as compared to the national average.
The housing market in Manchester is greatly defined by the relative trends in housing prices and rental yields. According to an evaluation by real estate experts, the projected capital growth for Manchester by the year 2022 is expected at an all-time high of 21.6 percent as compared to other neighboring cities. Being one of the best performing property markets in the UK for the last five years, the property prices are expected to grow to an excess of over 50 percent by 2028. This is expected to be accompanied by additional growth of rental yields by between six and seven percent.
Investment in infrastructure in Manchester happens to be one of the key leading factors that are making the city to flourish in property investments. An array of different infrastructural projects that are currently underway around Manchester, including the Manchester Airport worth over a billion pounds in budget, are expected to pump in more money and more jobs. Additional projects, such as the HS2 rail network, are also expected to bring in more jobs and more people to Manchester. The resultant effect of these jobs will be a boost in purchasing power and demand for houses.
Manchester also happens to double as a major multicultural center as fueled by diversity within the population. As students flock into universities around Manchester, they will most likely board within properties located in the area. Statistics indicate that over 69 percent of students from Manchester universities start their careers within the area after graduation. This is a positive trend for the City’s real estate property sector as demand for houses remains on an all-time high.
As Brexit gears towards a possible positive conclusion, the political uncertainty created by the standoff between the EU and the UK is slowly dragging down local investments. Over 80 percent of the investments that the country experienced last year were from abroad. This is a favorable sign as the demand for commercial real estate properties in the UK, including offices and manufacturing centers, remains high despite the relatively unsuitable political temperatures.