Job numbers in the city are rising faster than other major regional cities in the UK, further increasing the demand for real estate in an already significantly undersupplied property market.
Summary:
- Sustained economic growth in Manchester continues to impact the city’s commercial and residential property markets positively
- Manchester will have 10,000 more office workers in the city by 2021 than it did in 2018, while it also had the greatest volume of inward investment deals compared to five other major UK cities
- As a result, Manchester’s property market “isn’t just already outperforming other cities but the opportunities in front of it are rich and diverse”
More jobs and more workers mean demand for real estate in Manchester continues to rise.
The city’s property market has been described by adviser JLL as being “in a league of its own”, as employment growth and sustained inward investment is driving returns for investors in Manchester’s real estate sector.
According to the firm’s latest North West Market Update, Manchester city centre is expected to boast over 10,000 more office workers by 2022 than it had just last year.
Compared with the UK’s five other big regional cities (Glasgow, Edinburgh, Birmingham, Leeds and Bristol), Manchester also had the highest uplift in the number of new office take-ups in 2018. 1.75 million sq.ft. of office space was bought last year, over double the 10-year average for these regional economic hubs.
Furthermore, Manchester’s 23 inward investment deals in 2018 was also the highest of any other major regional city.
“When thinking of the UK’s strongest property markets, Manchester continues to be in a league of its own,” commented Elaine Rossall, UK Head of Offices Research at JLL. “Job creation is at record levels and is spread across a range of sectors. Commercial development is increasingly catering to occupier demand and this is translating into positive, continued growth across the other property markets.”
She also added: “The current strength is also against a backdrop of the UK economy performing better than expected in the run up to Brexit, with Manchester really bucking expectations.”
Manchester’s young population of city centre workers has already established it as one of the strongest places in the UK for investors to capitalise on the demand for central apartments, with high-quality facilities and amenities, demanded by affluent millennial tenants.
But the sustained economic growth, JLL reveals, is also creating opportunities for investors to provide city centre homes for older tenants looking to downsize.
Such is the demand for residential property in Manchester, older workers are also being drawn into city centre living in the same way as their younger counterparts. This creates an opportunity for investors to provide high-spec apartments for this tenant demographic, too.
Source: Select Property