The Manchester property market has been booming over the last several years, which has certainly caught the attention of many property investors from all over the country and the world. But, with rising interest rates and signs of economic instability, forecasts of the property market in Manchester are as important as ever for those looking to invest in a property while prices are down from 2022.
To help you make the right financial decision, in this article, we’re going to:
- Take a look back at the value of Manchester’s property market
- The best areas to buy a property in Manchester right now
- What is currently happening in the Manchester property market
- What’s next for Manchester’s property market
- Why Manchester is a popular choice for investors
A Look Back at Manchester’s Property Market
It goes without saying that one of the best ways to predict the future is to look back at the past. So, in this section, that’s exactly what we’re going to do.
For the last 10 years, Manchester has been one of the most attractive destinations in the whole of the UK for students and young professionals chasing their career goals. As a result of that, the property market in Manchester has seen a staggering growth not just in the city centre but throughout.
In the span of just a decade, the average property prices in the city went from around £213,000 to around £300,000, which is nearly a 33% growth. And the thing is, things are only really starting to pick off in Manchester now. The city is already deemed as the London of the North and it’s easily the second most popular city in the UK.
With that said, if you haven’t had the chance to invest in a property in Manchester but are ready to make the jump now, there are a handful of great areas that you should consider.
The Best Areas to Buy an Investment Property in Manchester
Many investors consider investing in property to be a relatively safe investment when it’s done in a large and growing city such as Manchester. And while there is some truth to it, that alone doesn’t paint the full picture.
When investing your hard earned money into a property, you don’t just want to make a profit. You want to make as much profit as you can in as little time as you can. That way, you can recoup your investment and your profits, and repeat the process to make even more money.
The best way you can make the most out of your investment is to choose a property in the right place in Manchester (ideally a neighbourhood with high demand, growth potential, and relatively low property prices).So, if you’re looking for the best areas to buy an investment property in Manchester, keep on reading to find our top choices.
Fallowfield is in the M14 postal code, and it’s largely considered one of the best investment areas if you’re looking to buy an investment property. One of the most attractive features of Fallowfield is that it has a fast-growing student population. So, if you’re considering investing in a property to rent out to students and young professionals, Fallowfield is an area you should definitely consider.
The average property in the area over the last year sold for around £238,447, which is still around £60,000 off the average property price in Manchester. If you’re looking to rent out to students, you can expect a yield of around 8 to 11 percent.
If flats aren’t your thing, you should definitely consider investing in residential properties such as semi-detached and detached homes. And one of the best areas to do that in Manchester is Didsbury – a green suburban zone situated around six miles to the South of the Manchester city centre.
The average property price in Didsbury is £363,789, which is around £60,000 over the Manchester average, but renting a property in this part of town will yield you a very nice return. This is mostly because wealthy families, celebrities, and athletes live in and around Didsbury.
If you’re prepared to hold off your investment for a while, investing in properties in up-and-coming parts of Manchester is a great way to profit greatly once the area starts to attract more eyeballs.
One such area is Salford – a small city 3.2 miles out of the Manchester city centre that sits on the western bank of the River Irwell. The average property in Salford sold for £256,757, which is far below the Manchester average. And with the area growing in popularity year on year, expect prices to follow suit over the next 3 to 5 years.
If you’re looking to invest in a property but don’t want to break the bank, one of the best areas to do so in Manchester is Longsight. In this part of town, the average property just last year sold for £199,750, which is over £100,000 off the Manchester average.
For those keen on this location, we do recommend that you stick to properties that are closer to the city centre as they are usually in higher demand due to their convenient location.
What Is Happening in the Current Manchester Property Market?
If there’s one thing you need to know about the Manchester property market, it’s that it’s very competitive, even during times of uncertainty and economic instability. The reason the market is so competitive is because Manchester is such a great area for investors.
With an ever-growing young population, it’s easy for buy-to-let landlords to find renters for their properties. On top of that, the growing population also indicates that property prices may rise over the next few years, which is something that many analysts predict.
What’s Next for the Manchester Property Market?
Although it’s impossible to accurately predict the future of Manchester’s property market, it’s evident that the city is growing each and every day. And as a result of that, the Manchester property market is expected to follow suit.
That said, it’s always best to proceed with caution when making large investments, especially in property. While the future looks bright for the Manchester market, there are many things that can affect that in the coming years, which you need to be aware of.
Why Is Manchester Such a Popular Choice for Investors?
There are many different reasons why Manchester is such a popular choice both for private and institutional investors. These include:
- Strong economic growth
- Increasing demand for rentals
- Constant development in infrastructure
- Education and research
- Cultural and social amenities
If you want to get into the Manchester house market and make a profitable investment, it’s essential that you buy at the right time. That way, when the time is right, you can sell your house fast for a profit without having to wait for months to find a buyer.
However, in order to do that, you need to have a good understanding of Manchester’s property market, the factors that can affect it, and make an informed decision based on data-driven market forecasts.