The UK property market has revolved around London for seemingly ever. Obviously, its status as a population and financial hub has provided the capital with a relatively stable base. However, there has been a movement away from London in recent times with other cities taking advantage of the situation.
Perhaps no city has benefited from the shift away from London than Manchester. The city is probably best known in Asia as being the home to football powerhouses Manchester United and Manchester City, but the performance of the local property market surpasses just about anything seen on the pitch.
Affordability along with employment growth and sustained inward investment has driven an influx of people to the city. In July alone, JLL reported Manchester recorded a 117% increase in people moving to the city year-on-year. And this isn’t a short-term gain. More than 100,000 new residents are predicted to call the Manchester city centre home by 2025.
This growth has not hampered Manchester’s quality of life as it was named as the best city in the UK to live by the Economist Intelligence Unit’s 2019 Global Liveability Survey for the ninth year in a row. These are just some of the factors that has seen Manchester become the property market in the UK preferred by overseas investors.
“When thinking of the UK’s strongest property markets, Manchester continues to be in a league of its own,” Elaine Rossall, UK Head of Offices Research at JLL, explained earlier this year. “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.”
As to be expected, home prices in Manchester have risen at an impressive clip. Between 2013 and 2018 property price growth in Manchester exceeded the UK average with prices here increasing more than anywhere else in the country. From June 2017 to June 2018, average property values in Manchester rose by 7.4 percent.
The foundations of the rental market in the UK are just as positive. Research from VeriSmart, a letting compliance firm, found that the UK will have more home renters than owners in 20 years if current trends continue. At the moment, the UK has the fifth highest number of renters in the EU and this group accounts for 35 percent of the housing market.
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Meeting the needs of investors and renters
For overseas real estate investors, identifying a market with opportunity, such as Manchester, is just one part of the equation. The second part is finding a developer who is in tune with what the local market needs, both in terms of location and project type.
Of all the projects currently in the pipeline, Victoria Residence at Crown Street stands out the most. The 21-storey luxury residential project from Select Property Group is located at the gateway of Manchester city centre and is part of the masterplanned and highly coveted Crown Street neighbourhood. However, location is just part of what makes the project special.
In a recent report, Savillis noted that it was important for residential development targeting renters to foster a sense of community and encourage residents to stay longer. To that end, Victoria Residence at Crown Street has been equipped with premium amenities designed to provide a lifestyle that could otherwise not be afforded. These include a high-floor swimming pool, Royal Gardens, a gymnasium, co-working lounge, residents’ lounge and podium-level retail outlets. The development truly provides the best in luxury and convenience.
From the overseas investor perspective, Select Property Group can provide full management solutions tailored specifically for investors based outside the UK. And with 7 percent gross projected yields and 66 percent ROI forecasted 5-Year NET profit, Victoria Residence at Crown Street is a lucrative, hands-free UK property investment opportunity.
Additionally, construction of Victoria Residence at Crown Street is progressing nicely and is scheduled for completion in the third quarter of 2020. This ensures investors have the opportunity to enjoy the natural capital growth of an off-plan investment with the peace of mind of a near completed project and returns starting in less than 12 months’ time.
“I’m incredibly excited to offer this new project to our investors in Asia. Following the success of our first project at Crown Street, the time is now right to launch Victoria Residence. There is, quite rightly, huge appetite to invest in Manchester at the moment. The city is just at the start of a very exciting period of growth but, with a critical undersupply of property, the positive investment conditions only look set to continue in the coming years,” Adam Price, Managing Director of Select Property Group, explained. “
He concluded, “Victoria Residence at Crown Street boasts an incredible location in Manchester city centre and, coupled with its high-quality finish and facilities, we know that it will attract huge attention from tenants when it opens its doors next summer.”
Victoria Residence at Crown Street has launched in Asia and interested investors are encouraged to act now in order to secure a unit. Strong demand from both local and overseas investors means units will be taken up quickly as was the case with Select Property Group’s first development, Elizabeth Tower, where sales of GBP 126 million have already been recorded.