Manchester is quickly becoming the place for property investors looking to capitalise on the city’s bulging economy and almost perfect conditions for investment. Real estate giant Savills UK rated Manchester as the strongest investment destination in the whole of the UK. It seems that if it isn’t London for investors, then Manchester it most certainly is.
What makes Manchester so attractive to property investors?
It isn’t just coincidental, there are a number of very good reasons as to why investors are flocking to Manchester with just a few highlighted below.
A large percentage of Entrepreneurs
Manchester is without doubt one of the most entrepreneurial cities in the UK and it has the figures to back this up. According to research by Instant Offices, Manchester has an entrepreneurial population of 14%. This equates to 115,932 new companies being formed in the region in the last two years; amongst these are many vibrant ventures such as Floral Image Manchester, Inspired Goodbyes, Salut Wines and HROnline; adding a bit of colour, creativity, style and substance to the city. More companies in the region have a knock-on effect on other businesses that provide services and products that others may need.
All these new SMEs need to live somewhere! Just one knock-on effect of having a large percentage of entrepreneurs is that there is an increased demand for office space and storage facilities, which is music to the ears of property investors. Cash flow can often be fairly tight with a new start-up, so one trend that has grown is flexible workspaces. According to the figures, flexible workspaces are up almost a quarter in comparison to the previous year.
Demographics & Population Growth
The number of people living in and around Manchester has increased massively in the last decade or two. Between 2001 and 2011 the population grew by 19% and it is still continuing to grow at a much higher rate than the national average.
Not only is the population growing, but it is the ‘right’ kind of demographic growth for investors. Not only does it have one of the largest student populations in the UK, it has one of the largest in Europe! There are three big universities either in the centre or just on the outskirts: the University of Manchester, Manchester Metropolitan University and the University of Salford.
A large number of students, combined with many young professionals, means the creation of a strong rental market with people of a younger age preferring to rent rather than buy. There are already a number of residential property construction projects in the city and surrounding areas but there is an undersupply, which means residential lettings may be a wise move for property investors in Manchester.
Facts & Figures
If the reasons above weren’t enough then the city has the facts and figures to back it up making Manchester such a desirable area. Manchester currently has a rental yield of 7.98% which is currently higher than any other UK city. Over the last five years, the average growth yield of the city is 6.02% which is much higher than the national average of the same time; 4.1%.
And of course, we can’t forget that Manchester is the unofficial capital of the Northern Powerhouse. For this reason, Manchester is set to receive significant investment from the government for infrastructure and business development, as well as private investment.
With a huge variety of new start-ups, a growing population and the right demographics, property investors have a whole host of options for where they can enter the market to capitalise on such good conditions and the needs of the city.
How Gorvins Can Help
At Gorvins we have a highly specialist group of solicitors in our Corporate team and Commercial Property team who can deal with all manner of legalities from commercial leases, development and investment, corporate ventures, commercial contracts, franchising opportunities and much more.
To speak to one of our highly experienced lawyers today, call 0161 930 5151.