Top reasons to invest in an off-plan property in Manchester

Manchester has become one of the fastest growing cities in the UK and one of the best places for investors to purchase rental properties. Here are some of the main reasons why buying off-plan residences in Manchester is a great investment idea. Property is generally an excellent choice for early stage wealth building investors due to capital appreciation, cash flow and general population growth and trends.

Manchester in the north of Great Britain was an excellent example. In recent years, it has seen exponential population growth and a booming real estate market. It has also experienced growth in its economy and industry, making it a fantastic choice for investors. It has also become home to several regeneration projects, which have seen numerous large-scale property developments, including luxury, off-plan properties specifically designed for renters.

Top reasons to buy off-plan property in Manchester

Property prices

While property prices in Manchester have risen significantly in recent years, buying a property in Manchester is still much cheaper than buying a property in London or the rest of the south of the UK.

The average cost of a property in Manchester would set you back £234,000, according data recorded in April 2024. Rightmove data shows that the average price of a property in the city – regardless of property type – was £302,246 over the past 12 months. The majority of sales were semi-detached properties, which sold for an average price of £332,751.

The current prediction for the city’s real estate market is overwhelmingly strong. According to real estate giant Savills, the city is expected to see house price growth of 24.3% by 2026. This estimate is phenomenal and exceeds the national average.

The positive changes in Manchester’s property scene are here to stay, which is why buying an off-plan property in Manchester is a great idea.

Lower initial costs

To buy off-plan properties in Manchester, investors tend to go through property investment companies that connect them directly with property development agencies. Since the property is off-plan and not yet built, developers often sell them below market value to attract buyers. This means that as well as buying property in Manchester, which is already lower compared to the south of the UK, investors can also get better deals by opting for off-plan residences.

Strong returns

With more affordable housing and high rents in the city, this means Manchester can offer high rental yields. In downtown and other viable areas, rental yields are typically between 5 and 8 percent. There have even been cases where some rental yields have been as high as 13% in the Greater Manchester area.

Growing population

More people are moving into the city than ever before, contributing to rapid population growth. As mentioned above, Manchester has seen a rise in popularity, which has been reflected in the steady increase in population. From 2011 to 2021, the city’s population grew by 7.3%, with predictions that this trend is set to continue. Currently, in the city center, the population is 560,000. The population of the Greater Manchester metropolitan area is currently close to 3 million people. The population density for Manchester is 12,210 people per square mile, which translates to 4,716 people per square kilometer.

Economy

This is a town that plays hard and works hard. Manchester’s economy is growing rapidly and has established this city as the new capital of the North and Britain’s ‘second city’. The city attracts thousands of workers to the city every year as the city has established itself as a northern hub for a multitude of industries. Popular industries in and around the city include technology, media, finance and more. This means there are plenty of high-income tenants looking for quality rentals such as those offered through off-the-plan ownership.

Overall, the city has seen constant change and redevelopment. There is currently a huge push for new infrastructure and regeneration. As part of the Northern Powerhouse initiative, the city’s economy is constantly being boosted and supported as part of an appeal to investors.

Regeneration projects

Manchester has become home to numerous regeneration projects, with new buildings popping up almost overnight across the city. The council has approved numerous regeneration plans and has plans for thousands of new homes to meet the city’s growing demand for housing. This constant trend of redevelopment and regeneration has made the city an attractive destination for buy-to-let investors as there are plenty of apartments and other residences to choose from.

Some regeneration projects and case studies include:

Red Bank

A fantastic case study is the Red Bank neighborhood. It is a district in Manchester’s Victoria North which is currently undergoing major regeneration to attract investors and businesses and help meet housing demand. The council and the Far East Consortium are currently planning to create a multi-use space incorporating 15,000 new homes, green spaces, office space, commercial areas, community facilities and transport hubs. It’s shaping up to be the next exciting new destination in town. It has already become one of our most popular locations in the city. For more on Red Bank, click Here.

Spinning fields

Spinningfields is considered the city’s key industrial district, with hundreds of companies based there. It is also home to a host of premium residences for the best earners in the city. It attracts a lot of investors, especially because of the opportunity to cater to high net worth individuals and the potential for capital appreciation. You can check out our Spinningfields properties Here.

Greengate

Greengate is an area of ​​Salford which is undergoing major regeneration. Close to the tech and media hub, MediaCityUK, the area has become a hotspot for high-income tenants and investors. For more about Greengate and our projects there, learn more Here.

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North Property Group is a UK property investment and lettings agency. We specialize in new build and off-plan properties in the UK, securing deals with the best property developers across the country. We then pitch them to investors, offering advice and support.

Not only do we find the best off-plan property deals on the market, we also offer a full end-to-end tenancy management service. We manage leases, payments and paperwork, giving investors peace of mind and a hands-off approach. Book a free consultation with us today to start your property investment journey in Manchester and take advantage of the UK’s off-plan opportunities.