Manchester’s property market: The five-year forecasts
When considering an off-plan property purchase,there are few things more important than getting the location right. If you can find a place where the population and economy are growing, which has a high level of planned investment and job creation, and that has a shortage of available housing, you will give yourself the best chance to maximise your returns in the future.
Not many places offer a better example of this principle in action than Manchester. The city has been known as a UK property hotspot for a decade or more, and the next five years look set to prove this all over again.
Read on to learn more about Manchester’s future and what makes it is one of the best places in the UK to buy property over the next five years.
Manchester’s population growth in remarkable. This is especially true in the city centre which is expected to be home to more than 100,000 people by the end of 2026. This will represent growth of 40% since the beginning of the decade – an average of almost 7,000 extra people a year since 2020.
By 2028, it is likely that more than 630,000 people will call Manchester home. This is a testament to the city’s growth story and a major reason why property in Manchester is so attractive to both homebuyers and investors. Demand is going through the roof, taking property values and rents upwards at the same time. Read on below to see just how high prices are being pushed by this demand.
Why are so many people moving to Manchester? The quality and quantity of jobs on offer improves every year, making it an extremely attractive place to live. Returning to City Council figures, the Manchester’s employment growth rate is approximately 2.5 times higher than the national average and outperforms every city in the UK, including London.
Overall, it is anticipated that more than 315,000 jobs will be based in the city centre alone by 2040. That is on top of other employment hubs such as MediaCityUK, home of the BBC, which are also playing a major role in the growth of Manchester.
Alongside the population and employment growth, Manchester also has a substantial amount of investment in progress which sets it apart from other comparable cities. Billions of pounds are going into ambitious projects including Mayfield, ID Manchester, First Street, Great Jackson Street, NOMA, MediaCityUK and more. Investment and regeneration in Manchester is so impressive that even the cancellation of HS2 will leave Manchester’s future prospects largely unaffected.
Manchester is a city which constantly evolves and has cemented its status as a city which is exciting, desirable and full of opportunities for people from around the world. It is no surprise that so many are moving to Manchester to be a part of its next world-changing era.
Against that backdrop, the property market is set to grow rapidly in the next five years thanks to a real shortage of available properties and a construction pipeline that is not able to meet demand. To take the city centre market as an example, the latest Deloitte Crane Survey shows that just 11,759 new homes are in the pipeline over the next three years – far less than is needed to meet the demand of approximately 7,000 extra people a year.
Due to this imbalance between supply and demand, JLL has predicted that house prices in Manchester will rise by 19.7% by the end of 2027, following 4.9% growth in 2022. Rental growth projections are also positive. Following 19.6%% growth in 2022, predictions in the latest JLL Big Six annual report show that a further 21.6% rental growth may be in the pipeline by the end of 2027.
Off-plan property for sale in Manchester is popular with investors and homebuyers for good reason. The city is booming and there has never been a better time to buy property in Manchester and maximise returns. The city’s population growth, economic strength, investment plans and shortfall of available homes make luxury city centre property in Manchester an unmatched opportunity.
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