Investment properties in Manchester
Even though London is the most popular city, Manchester provides the opportunity to gain higher rentals and strong financial performance. The population growth, infrastructure development projects, job opportunities, and lifestyle attracts new buyers to the northern powerhouse. The impact of Brexit on UK companies forced many bankers and lawyers to relocate to other cities like Dublin that witnessed the property boom in recent months. Brexit changed the way investors were buying properties and the RICS reports find the Brexit impasse continues to challenge the market but the blame on the exit may not be reasonable as the market is undergoing challenging changes and some areas were down even before the economic recession, where the relocating trends ignited demand in newer locations like Dublin and Manchester.
The central Dublin property prices have doubled in the last five years and the current rents are almost 37 percent higher than their 2008 peak. Currently, the rents of a new office in the city can be about 2000 Euro and average mortgage payment for a similar property can be at 1200 Euros (Daft.ie report). The lender for buy-to-let investors in Ireland Dilosk Ltd. is preparing to offer securities repackaging the offerings and this is highly optimistic development in the Irish capital, that offers a number of new jobs and high-end real estate opportunities to the financial professionals.
Higher capital growth and safe returns
The UK real estate markets have been under pressure during the Brexit phase, however, the overseas investments continue to pour in the capital in the alternative locations like the northern powerhouse and Ireland. 77 percent of the GCC investors find the UK the top destination for overseas property investors due to higher capital growth and attractive returns (as per YouGov survey commissioned by Select Property Group).
Multi-billion pound investments in the city create opportunities where the population is expected to increase by 125,000 by 2025, and the demand for homes continues to grow. The city requires at least 9000 new homes each year to meet the demand, and in three years, the construction projects will be able to construct only 25 percent of the yearly demand. The growth in price was at 9 percent in the year 2017-2018 that was more than UK’s average of 5 per cent, while, the growth in the price of residential properties is almost 80 percent more than the UK average, and rents are projected to grow at the rate of 40 percent more than the UK’s average.
In the last month, the Icon Industrial confirmed two proposals of warehouse development at Manchester Airport site that is a joint venture between Stanford and TPG Real Estate. The development provides the opportunity to relocate to the North West with better airport connectivity.
CBRE Manchester Catila Markets team state this was a record year where they advised on real estate transactions worth more than £1.5bn. Over 40 transactions were concluded in the year 2018 across various sectors including offices, retail, healthcare, and logistics. The team of CBRE said the city continues to grow and is becoming the hub for a range of different business activities in the technology sector, healthcare, and media that will support further investments.
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