X1 News

Savills’ Forecast Signals Prime Investment Opportunity in Manchester and the North West Property Market

May 13th 2024

In the dynamic landscape of real estate investment, timing is crucial. Savvy investors are always on the lookout for emerging trends and promising opportunities.

With Savills’ recent upgrade in its five-year forecast for UK house price growth, particularly in the North West region, the spotlight is now firmly on cities like Manchester.

Let’s delve into why this shift in forecast signals a golden opportunity for investors seeking capital appreciation in this vibrant part of the country.

north west and manchester property market

1. Strong Market Fundamentals

The North West, and Manchester in particular, boasts robust market fundamentals that position it as an attractive investment destination.

The city’s diverse economy, bolstered by sectors such as finance, technology, and healthcare, provides a stable foundation for sustained property growth.

Additionally, ongoing infrastructure developments, such as the High Speed 2 (HS2) rail project and the Northern Powerhouse initiative, are further enhancing Manchester’s appeal to investors.

north west investments

2. Rising Demand and Limited Supply

One of the driving forces behind the projected house price growth is the imbalance between housing demand and supply.

Manchester and its surrounding areas are experiencing a surge in demand for housing, fueled by factors such as population growth, urbanization, and an influx of young professionals.

However, the supply of new housing units has struggled to keep pace with this increasing demand, leading to upward pressure on prices.

As a result, investors stand to benefit from capital appreciation as property values continue to rise in response to sustained demand.

Savills' Forecast Investment

3. Affordability and Investment Potential

Compared to property markets in London and the South East, Manchester offers relatively more affordable entry points for investors.

This affordability, coupled with the city’s strong rental market and favorable rental yields, makes it an attractive proposition for both seasoned investors and those looking to enter the market for the first time.

With rental demand expected to remain buoyant, investors can capitalize on the potential for rental income alongside long-term capital appreciation.

affordability manchester investment

4. Manchester: Leading the Charge in Regional Growth and Regeneration

While the broader North West region is experiencing growth and regeneration, Manchester stands out as the epicenter of this transformation.

With a skyline dotted with cranes and a bustling city center, Manchester is at the forefront of urban renewal and development.

From iconic waterfront projects to ambitious infrastructure initiatives like the Northern Gateway and the Mayfield regeneration scheme, the city is undergoing a remarkable transformation.

For property investors, Manchester presents unparalleled opportunities for growth and capital appreciation.

Its vibrant economy, thriving cultural scene, and world-class educational institutions make it a magnet for both domestic and international investors.

By focusing on Manchester, investors can tap into a market that is not only primed for growth but also at the heart of the North West’s resurgence.

manchester leading regional growth

Expected Growth Calculation

Let’s consider an example to illustrate the potential for capital appreciation.

If you invest in a property in Manchester valued at £300,000, with Savills’ upgraded forecast projecting a growth rate of 21.6% over the next five years, we can calculate the expected increase in the property’s value.

Expected increase = £300,000 × (21.6 / 100) = £64,800

Future value = Current value + Expected increase

Future value = £300,000 + £64,800 = £364,800

capital appreciation

In conclusion, Savills’ upgraded forecast for UK house price growth reinforces the attractiveness of Manchester and the North West as prime investment destinations.

With strong market fundamentals, rising demand, limited supply, and ample investment potential, now is indeed an opportune moment for investors to seize the potential for capital appreciation in this dynamic region. 

By taking a strategic approach and leveraging the unique advantages offered by these markets, investors can position themselves for long-term success and growth in the thriving property sector of the North West.

Here at X1 Sales & Lettings, we posses the expertise and market knowledge and are here to guide you towards high-yielding opportunities.

If you’re searching for prime investment opportunities in Manchester, do not hesitate to get in touch with us via hello@X1management.com. 

Read next: X1’s Official Guide To The Spring Budget 2024.

© X1 Lettings & Sales 2024. Registered with number: 10246071