Manchester has undergone a complete transformation over the past 10 to 15 years and is currently the strongest UK property market outside London, with the highest rental yields of up to 6.02%, according to a latest report by a property investment firm.
It is receiving increasing interest especially from international investors, with top Chinese property website Juwai.com suggesting, “We expect London’s share of total investment to decline gradually as Manchester and other cities become more successful at attracting Chinese buyers.”
Emerging as the North of England’s cultural and entertainment hub, many tech companies are now relocating to this thriving metropolis boosting its economy and pushing up population by 26% with employment forecasted to increase by a further 4.3% over the next five years.
Manchester is also becoming a tourism hotspot for travelers from the Middle East. The city has seen a 33% rise in visitor levels between 2011 and 2015, with travelers from the United Arab Emirates alone contributing worth over £18 million to Manchester’s economy, underlining its growing profile as an inviting destination for wealthy holidaymakers.
Along with significant amounts of investment poured in, the Northern Powerhouse vision has already created more than 8,000 new jobs over the past four years with a commitment for another 850,000, by 2050. Following Prime Minister Theresa May’s August 2017 confirmation that she will press ahead with former Chancellor, George Osborne’s, plans to boost infrastructure and assign power to the city, Manchester is seen as a safe haven for property investment and presents an increasingly attractive proposition to both overseas and domestic buyers.
Ronald Garrett, Director of Sales at Alliance Investments says “This significant growth in Manchester’s economy will continue to fuel the lively residential market where demand from the 2.5million-strong population already significantly outweighs supply.
“Manchester is one of the best locations for buy-to-let in the UK, continually topping reports from major banks, finance agencies and other official outlets as an outstanding location for high rental yields and affordability – both key factors when choosing a location for investment. A heavy student population from four universities and a strong presence of young professionals keeps rental demand high all year round”
Matthew Jay, managing partner at Alliance Investments, added: “Chinese buyers are especially keen on properties in northern cities due to their high rental yields, but also because China’s Government is helping to build the Northern Powerhouse ambition.”
“Whilst overseas investment in the residential property market is particularly strong, the outlook for 2018 is very promising indeed. We certainly expect rental yields in the city to continue to reach an excess of 6 per cent.”
Alliance Investments, global sales division of 27 year Property Alliance Group has a diverse portfolio of luxury and affordable residential apartments in the heart of Manchester’s booming city centre.
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