Will Manchester’s Property Boom continue – About Manchester

Manchester property boom is aided and
abetted by an incredibly strong market in purpose-built student
accommodation (PBSA). Student developments have quickly formed the
backbone of Manchester’s property economy and provide the platform for
future growth and profitability.
Manchester has the UK’s second
biggest student property market. Over the last five years the city has
seen a 20% increase in the number of overseas students attending
Manchester’s higher education institutes. This swell in the student body has further added to the ample demand for student accommodation that far outweighs the current supply.
Manchester already has nearly 24,000
student bed spaces, but more are sorely needed. The effect of demand
exceeding supply has already seen a rise in prices in the city. Over
2017, the price of en-suite student bedrooms rose by 3%, while studio
apartment rents increased by 5% over the same period.
High student numbers, impressive
student retention and a huge population density in the city centre means the demand for high end luxury apartments and student accommodation is at an all-time high.

Manchester’s economic and property
boom has also made great gains from growing Middle East and Chinese
investment. The city’s long-term prosperity looks to be banking heavily
on the influx of direct foreign investment that is bolstering
Manchester’s property market.
Direct foreign investment from China
has propelled a large part of Manchester buy to let property market.
Chinese investors have been acquiring such properties in the city at an
incredible rate, such is their enthusiasm to become financially involved with the region. As interest in investing in London wanes and the
capital becomes too unwieldy and unpredictable of an investment
prospect, Manchester has picked up the slack.
An incredible 256% rise in Chinese
interest was recorded against the previous January. Market data suggests
that a Chinese property investor will look to spend an average of
£223,000 per property purchase. The average house price in Manchester
falls at around £190,000; a stark contrast to London’s excessive average
of £481,556. Consequently, foreign direct investment coming from China
is well-positioned in Manchester’s property market and can look to make
profitable acquisitions with costs lower than expected.

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