Manchester continues to attract investor interest, with £250 million placed into residential property and the largest take-up of commercial space in the north-west
- The north-west led all regions for new build properties commissioned since July, with a quarter of a million invested in Manchester alone
- A growing professional population in Manchester have seen nearly 40,000 sq ft of office take-up in Q3 of 2015
- Over 2,000 private rental accommodation properties are under construction to try and keep up with increased demand
Manchester leads the north-west in residential investment, with £250 million worth of property development commissioned since July.
This follows a report by Deloitte Real Estate in October that suggests over 10,000 new private rented sector (PRS) flats are due to be built in Manchester. Over 2,000 new PRS flats are already under construction, with Manchester remaining a key target for investors.
With a median age of 29 and a population increase of 20% between 2001 and 2011, Manchester is continuing to experience unprecedented growth and this is reflected across all property.
Businesses are taking advantage of an increasing population by opening up Manchester branches to attract a growing pool of talent found in the north-west. In the third quarter of 2015, Manchester accounted for the largest proportion of office take-up, with 37,997 sq ft transacted, 28% of the combined total across 10 regional cities outside of London.
David Porter, Head of Knight Frank’s Manchester office said: “The increase in occupier activity in the regions, particularly Manchester, is good news and very fortuitous for those investors that entered the regional markets first. As leasing markets have strengthened, opportunities in Manchester have become more attractive to investors. With the weight of money targeting markets outside London rising, we expect bidding to become more aggressive and place pressure on pricing.”
With an 18% capital growth in the last 18 months, Manchester’s outlook is one of sustained economic investment. With a growing population and dwindling supply of property, prices are expected to grow by 22.2% in the next three years as demand remains high for quality accommodation.