07 Jun 07.06.2019 Manchester’s Property Market
07.06.2019 Manchester’s Property Market
According to Elaine Rossall, UK Head of Offices Research at JLL,“When thinking of the UK’s strongest property markets, Manchester continues to be in a league of its own”, as employment growth and sustained inward investment is driving returns for investors in Manchester’s real estate sector.
“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.”
In accordance with the data provided by JLL, Manchester city centre is expected to have over 10,000 more office workers in the city by 2022 than it had just last year. More jobs and more workers mean demand for real estate in Manchester continues to rise.
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 square feet of office space was bought last year in Manchester, over double the 10-year average for these regional economic hubs.
Furthermore, Manchester also has the greatest volume of inward investment deals, 23 inward investment deals in 2018, compared to five other major UK cities.
Young working population of the city established Manchester 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.
The sustained economic growth is also creating opportunities for investors to provide city centre homes for older tenants looking to downsize. 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.