Manchester has been named the top English city for property investment in the latest ‘Top UK Residential Investment Cities‘ report for H2 2024 from Colliers for a second consecutive time. The report is designed to help investors to make “informed capital allocation decisions”.
Colliers' latest ‘Top UK Residential Investment Cities‘ report for H2 2024 has revealed the 20 best-performing cities across the UK by focusing on five key pillars: economic, research and development, liveability/cultural, property and environmental.
The analysis is designed to help investors to make “informed capital allocation decisions”.
At the top of the table once again are Scottish cities Edinburgh and Glasgow with Manchester was ranked third overall, but in first place for England.
Manchester is retaining its ranking for the second report in a row and maintains its position as the top property investment location in England. This rank shows the improvements and dedication to development across the city that make it a promising hotspot for residential investors.
The report praises Manchester's thriving economy, R&D credentials, exciting jobs market and booming population as well as its reputation for being a more affordable and livable location than London, with an exciting atmopshere and big ambitions.
The report notes: “Manchester continues to be a world-class city region, offering a fantastic environment for living in and for businesses to grow and prosper.
“Home to an £80 billion economy, global transport connectivity, incredible talent from the largest student population outside of London and high-quality business properties, it is a first choice investment destination for leading international brands
"Culture, art, music, sport and festivals are in abundance and this combined with easy accessibility to the surrounding beautiful countryside of the Peak District, Lake District and North Wales offer a compelling reason to live and work here.”
Office take-up in the city has experienced a steep rise over the past year, hitting its highest figure since pre-pandemic in 2024 with a total of 1.22m sq ft transacted, according to Colliers. This is higher than the city’s five-year average. One of last year’s most significant office transactions was BNY Mellon’s acquisition of 200,000 sq ft of space in the city centre.
This follows on from a number of large corporations and government bodies relocating to Manchester over the past five years. These include JP Morgan, Octopus Energy, and Rolls Royce.
These moves have boosted employment while simultaneously increasing demand for homes, giving investors more opportunity in the residential sector, and boosting property prices at the same time. Manchester has recorded the second-highest house price growth of the 20 cities analysed in the report.
However, its commitment to the environment is also clear with a high share of properties with an EPC rating of A-C, although environmental issues are marked as an area in which the city can improve.
In Colliers’ H1 2024 report, Manchester was ranked at the top of the 20 cities for its economy. In this report, it falls to third position, although it holds the second-best GDP forecasts of all cities analysed.
Manchester’s economy is forecast to grow at an annual rate of 2.2% over the next five years, while the unemployment rate is forecast to average 3.7% over the same period.
The city’s population is also forecast to see the highest growth of any of the 20 cities, with a projected increase of 1.07% per year over the next 10 years.
Another area where Manchester scored particularly strongly was in the R&D measurements, where the cities remains in fifth position due to its “positive net business creation”.
The report praises Manchester's large student population and high university rankings, helping to drive investment from both business and residential perspectives.”