Manchester has become one of the UK’s fastest-growing cities and one of the best places for investors to purchase buy-to-let properties. Here are some top reasons why buying off-plan residences in Manchester is a great investment idea. Property is generally a great choice for investors starting to build wealth, owing to capital appreciation, cash flow, and general population growth and trends.
Manchester in the north of the UK has been an excellent example. In recent years, it has seen exponential population growth and a booming property market. It has also seen a rise in its economy and industry, making it a fantastic choice for investors. It has become home to several regeneration projects as well, which have seen numerous large-scale property developments take place, including high-end off-plan properties specifically designed for renters.
Top Reasons To Buy Off-Plan Property In Manchester
Property Prices
While property prices in Manchester have seen a significant rise in recent years, buying a property in Manchester is still much cheaper than purchasing a property in London or the rest of the UK’s south.
The average cost of a property in Manchester would set you back by £234,000, according to data recorded in April 2024. Rightmove data shows that the average price of a property across the city – regardless of property type – was £302,246 over the past 12 months. The bulk of sales were semi-detached properties, which sold for an average price of £332,751.
The current prediction for the city’s property market is overwhelmingly strong. According to property giant Savills, the city is expected to see house price growth of 24.3% by 2026. This estimate is phenomenal and exceeds the national average.
The positive changes within the Manchester property scene are here to stay, which is why buying off-plan property in Manchester is a great idea.
Lower Initial Costs
To buy off-plan property in Manchester, investors tend to go through property investment companies that directly connect them with property development agencies. As the property is off-plan and not yet built, developers often sell them for below market value to entice buyers. This means that in addition to purchasing property in Manchester, which is already lower compared with the UK’s south, investors can also get better deals by opting for off-plan residences.
Strong Yields
With more affordable housing and high rents in the city, this means that Manchester can offer strong rental yields. In the city centre and other viable areas, rental yields usually fall between 5 and 8%. There have even been recorded instances of some rental yields being as high as 13% in the Greater Manchester area.
Growing Population
More people are moving to the city than ever before, contributing to a rapidly expanding population. As mentioned above, Manchester has been seeing a rise in popularity which has been reflected in its steadily growing population. From 2011 to 2021, the city’s population increased by 7.3%, with predictions stating this trend is only set to continue. Currently, the population stands at 560,000 in the city centre. The Greater Manchester Metropolitan Area’s population is currently nearly 3 million people. The population density for Manchester is 12,210 people per square mile, which means 4,716 people per square kilometre.
Economy
This is a city that plays hard and works hard. Manchester’s economy is fast growing and has established this city as the new capital of the North and the UK’s “second city”. The city attracts thousands of workers to the city each year, as the city has marked itself as a northern hub for a wealth of industries. Popular industries in and around the city include tech, media, finance, and much more. This means that there is a wealth of high-earning renters who look for quality rentals, such as the ones provided via off-plan property.
Overall, the city has seen constant change and redevelopment. There is currently a huge push for new infrastructure and regeneration. As part of the Northern Powerhouse initiative, the city’s economy is constantly being boosted and supported as part of an appeal to investors.
Regeneration Projects
Manchester has become home to plenty of regeneration projects, with new buildings appearing almost overnight all across the city. The council has approved numerous regeneration plans and has greenlit plans for thousands of new homes to meet the city’s growing demand for housing. This constant drive for redevelopment and regeneration has made the city an attractive destination for buy-to-let investors as there is a wealth of apartments and other residences to choose from.
Some regeneration projects and case studies include:
Red Bank
One fantastic case study is the Red Bank neighbourhood. It is a neighbourhood in Manchester’s Victoria North that is currently undergoing major regeneration to attract investors and businesses and help meet the demand for housing. Currently, the council and the Far East Consortium are planning to create a multi-use space that incorporates 15,000 new homes, green spaces, office spaces, retail areas, community facilities, and transport hubs. It is set to be the next exciting new “it” destination in the city. It has already become one of our most popular locations in the city. For more about Red Bank, click here.
Spinningfields
Spinningfields is considered the city’s key industry district, with hundreds of companies based there. It is also home to a slew of premium residences for the city’s top earners. It attracts a lot of investors, particularly due to the opportunity to cater to high-earners and the capital appreciation potential. You can check out our Spinningfields properties here.
Greengate
Greengate is an area of Salford, which is undergoing major regeneration. Close to tech and media hub, MediaCityUK, the area has become a hotspot for high-earning renters and investors. For more on Greengate and our projects there, find out more here.
Summary
North Property Group is a UK-based property investment agency and lettings agency. We specialise in new build and off-plan property in the UK, securing deals with the best property developers up and down the country. We then present them to investors, offering advice and support.
Not only do we find the best off-plan property deals on the market, but we also provide a comprehensive, end-to-end lettings management service. We manage tenancies, payments, and documents, offering investors peace of mind and a hands-off approach. Book a free consultation with us today to start your Manchester property investment journey and tap into the UK’s off-plan opportunities.
