The Property Market in Manchester and What to Expect in 2023

If you’re interested in low-cost, high-yield investment opportunities, right now is a good time to invest in the property market in Manchester.

Let’s take a closer look at what the forecast is for property investment in Manchester in 2023.

Increase in value

In recent years, there has been a growth in the value of rental properties in Manchester, which is set to continue.

It’s predicted that property value will go up by just under 19 percent in the coming years, while house prices are set to rise by six percent.

This makes Manchester a great place for savvy investors.

Oxford Economics has predicted that Manchester will have a 16.4 percent economic growth in the coming years, which makes it the highest of all cities in the UK. Very promising for the future of the property market in Manchester.

The best places to invest in Manchester’s property market right now 

There are a few areas that have become savvy investments in the last few years, mainly thanks to regeneration projects and Manchester’s popularity with students and young professionals.

The Green Quarter, Manchester city centre, and Salford have been part of this boom in regeneration.

As well as these more central locations, there are other areas of Manchester that are becoming increasingly attractive in terms of property prices.

Here are some of the average house prices for homes in various areas of Manchester:

• Castlefield: £273,015
• Bamford, Rochdale: £240,271
• Didsbury: £352,675
• Broadbottom, Tameside: £260,545
• Romiley, Stockport: £304,650
• Bramhall, Stockport: £450,749
• Whitefield, Bury: £243,778
• Prestwich, Bury: £264,822

Predicting the property market

To effectively predict the future of the property market in Manchester, it’s a good idea to look at how the market has been doing in recent years.

Overall, the property market has been very stable and has seen significant growth and Manchester seems to be in a good place right now.

Population growth is ongoing, as are the various regeneration projects across the city. That combined with the constant influx of students and young professionals means that the city is ever-evolving and in demand – an attractive prospect for potential investors and businesses.

We can expect to see house price growth in Manchester will exceed London and other cities in coming years, thanks to those regeneration projects in the city centre and surrounding areas.

All in all, Manchester’s house prices are more affordable than those in London, Glasgow and Edinburgh.

Regeneration in Manchester is something that continues to push prices up, increasing capital gains for anyone buying off-plan property in Manchester.

First-time buyers will also benefit from more reasonable house prices in the region, and with schemes such as Shared Ownership, 2023 looks bright for those hoping to get their foot on the property ladder.

Manchester property market forecast 2023

According to industry-leading experts, Manchester is on track to see some of its highest ever growth over the next several years.

Savills predicts average property prices in the North West region will grow by 18.8% by 2026. This puts Manchester on par with Yorkshire (18.2%) and Humber (17.6%). It also means Manchester is well above the average five-year growth rate for the UK (13.1%). This means very good news for the property market in Manchester. 

The rental market, which forms a big part of Manchester’s residential market, is also flourishing, which is part of the reason why so many investors are keen to invest in this Northern powerhouse city.

There is no indication of a dip in the Manchester rental market any time soon.

Oxford Economics also predicts that Manchester will have the highest economic growth of all UK cities over the next five years, with a growth rate of 16.4%.

Why is Manchester so popular with investors?

There are a few factors which contribute to Manchester’s ongoing success in the property market.

Amongst them are:

• Regeneration schemes

As previously mentioned in this article, Manchester has undergone extensive regeneration in the past few decades. As it stands, Manchester is now one of the UK’s most desirable places to live.

Multi-million projects like Victoria North and Spinningfields, alongside the projects that are underway, ensure that Manchester remains in pride of place on the map and attracts a healthy business economy.

• Population growth

The boom in regeneration and business has led to population growth in Manchester.

The lower cost of living and the more compact nature of Manchester makes this northern city a very real and attractive alternative to London.

Research from the Guardian in 2020 found that 13% of people leaving London were choosing to head to Manchester as their preferred base. That’s 12% higher than the number recorded in 2009, which can be put down to the transformation of Manchester over recent years.

Manchester City Council reported that Manchester’s population is predicted to reach higher than 635,000 by 2025 – something that will undoubtedly have an impact on the prospects of the property market in Manchester.

• Young population

Manchester is a university city and has one of the largest student populations in Europe. It also has one of the country’s best graduate retention rates at an incredible 51%.

Those students that choose to stay in the city are drawn to it by the city’s booming business scene and more affordable prices. Currently, around 37% of the population in Manchester is aged between 18 and 34.

That youthful population is drawing the attention of property investors, keen to latch on to the rental market.

Now is a great time to buy property in Manchester and take advantage of this upcoming capital appreciation. There are so many new opportunities to be seized!

Read our blog to find out more about regeneration projects and the property market in Manchester.