The Manchester recovery

13th January 2021

By Will Leyland

Of all the arguable glamorous things that Manchester’s famous for – Oasis, The Stone Roses, Joy Division, Manchester United, Manchester City, Steve Coogan – would it be fair to say that a booming local economy and property market are less alluring?

Whether it is or it isn’t, it’s inarguable that across not just the UK but across Europe people are sitting up and taking notice of Manchester as one of the most prominent investment cities on the continent.

Rewind back 20 years and much of the Manchester property scene was focused largely around a small city centre area but since the local council and developers started to invest in the wider area and focus on regeneration, there have been a number of enormously popular areas emerging.

The northern quarter, green quarter, Spinningfields, Deansgate and Ancoats are just a handful of examples where typically investors and developers hadn’t ventured until recently, but which are now growing in popularity every year.

There’s a number of contributing factors to what makes the city so popular but, broadly speaking, good location, good transport and a young, wealthy working population mean that it’s one of the most desirable places to live at the moment.

A new year, a new focus

2020, in Harry Potter terms, is the year that must not be named, so we won’t. It wasn’t a year that really gives much wider context to anything other than a snapshot in time.

With that in mind, Manchester is now gearing up to have an absolutely massive year in 2021 with a nationwide economic recovery and subsequent boom now imminent.

According to the Deloitte crane survey 2020, the number of schemes completed are at their highest levels since 2006 with the volume of office space under construction exceeding 2m sq. ft for the 2nd consecutive year. Furthermore, new office developments will deliver 15,500 new jobs and add £309m in wages once completed.

Invest in Manchester have published research which shows that “Manchester represents the largest UK city region economy outside London, with an economy worth £62.8 billion (GVA), with access to 7.2 million people within a one-hour drive and over 100,000 students, with strengths in cyber security, FinTech, genomics and advanced materials”.

This gives Manchester a serious cutting edge when business returns to normal, whilst research suggests that Manchester is one of the number one cities in the UK for people to move to for work, with living expenses and rents much less than their London equivalent.

Property 2021

Of course, despite 2020 being a write-off for many reasons Manchester had a pretty spectacular year in terms of property with prices, rents and yields all growing.

As the economy begins to shrug off the shackles of last year’s restrictions there’s every expectation that the pent-up demand for property will surge and see the city have a spectacular boom across the year.

Added to that, universities are expected to return to normality and with many having deferred due to the pandemic there’s every likelihood that there could be a bumper year for students who tend to stay on in the city to live and work, driving demand for apartments and city centre property.

As things start to look a lot brighter, Manchester is set to offer a truly unique opportunity for property investors in 2021.

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The Manchester recovery

13 January 2021

Of all the arguable glamorous things that Manchester’s famous for – Oasis, The Stone Roses, Joy Division, Manchester United, Manchester City, Steve Coogan – would it be fair to say that a booming local economy and property market are less alluring?

Whether it is or it isn’t, it’s inarguable that across not just the UK but across Europe people are sitting up and taking notice of Manchester as one of the most prominent investment cities on the continent.

Rewind back 20 years and much of the Manchester property scene was focused largely around a small city centre area but since the local council and developers started to invest in the wider area and focus on regeneration, there have been a number of enormously popular areas emerging.

The northern quarter, green quarter, Spinningfields, Deansgate and Ancoats are just a handful of examples where typically investors and developers hadn’t ventured until recently, but which are now growing in popularity every year.

There’s a number of contributing factors to what makes the city so popular but, broadly speaking, good location, good transport and a young, wealthy working population mean that it’s one of the most desirable places to live at the moment.

A new year, a new focus

2020, in Harry Potter terms, is the year that must not be named, so we won’t. It wasn’t a year that really gives much wider context to anything other than a snapshot in time.

With that in mind, Manchester is now gearing up to have an absolutely massive year in 2021 with a nationwide economic recovery and subsequent boom now imminent.

According to the Deloitte crane survey 2020, the number of schemes completed are at their highest levels since 2006 with the volume of office space under construction exceeding 2m sq. ft for the 2nd consecutive year. Furthermore, new office developments will deliver 15,500 new jobs and add £309m in wages once completed.

Invest in Manchester have published research which shows that “Manchester represents the largest UK city region economy outside London, with an economy worth £62.8 billion (GVA), with access to 7.2 million people within a one-hour drive and over 100,000 students, with strengths in cyber security, FinTech, genomics and advanced materials”.

This gives Manchester a serious cutting edge when business returns to normal, whilst research suggests that Manchester is one of the number one cities in the UK for people to move to for work, with living expenses and rents much less than their London equivalent.

Property 2021

Of course, despite 2020 being a write-off for many reasons Manchester had a pretty spectacular year in terms of property with prices, rents and yields all growing.

As the economy begins to shrug off the shackles of last year’s restrictions there’s every expectation that the pent-up demand for property will surge and see the city have a spectacular boom across the year.

Added to that, universities are expected to return to normality and with many having deferred due to the pandemic there’s every likelihood that there could be a bumper year for students who tend to stay on in the city to live and work, driving demand for apartments and city centre property.

As things start to look a lot brighter, Manchester is set to offer a truly unique opportunity for property investors in 2021.

Will Leyland

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