Northern Lights? Manchester’s Property Market outperforms other regional cities.
The number of jobs in the city of Manchester is rising faster than any other major city in the UK, further increasing the demand for real estate in a property market which is already heavily undersupplied.
As the amount of jobs and workforce numbers increase, it means that demand for real estate in Manchester continues to grow.
The property market in Manchester has been described by real estate advisors JLL as being, “in a league of its own”, as growth in employment and sustained inward investment is driving returns for investors in Manchester’s real estate sector.
In the firm’s latest northwest property market update, they revealed that Manchester has remained the top regional city, with the most office take-up since JLL began recording the data over 15 years ago.
Elaine Rossall, UK Head of Offices Research at JLL stated :
“When thinking of the UK’s strongest property markets, Manchester continues to be in a league of its own, Job creation is at record levels and is spread across a range of sectors. Commercial development is increasingly catering to occupier demand and this is translating into positive, continued growth across the other property markets.
This growth has seen a spark of development in surrounding boroughs and in the City of Salford in particular. LPC Living created waves with their Ordsall development which has seen further development by others in the city since then.
The current strength is also against a backdrop of the UK economy performing better than expected in the run up to Brexit, with Manchester really bucking expectations”
The city has a diverse, fast-growing economy and possesses an extensive range of job opportunities all while seeing the largest wage growth since 2008. Manchester is forecast to gain an additional 10,000 office workers by 2021 than it did in 2018.
This growth in jobs and wages is impacting positively on the industrial, office and residential property markets. There is a range of new and growing business districts in this Northern Powerhouse city that will continue to play a big component in supplying the rising demand for office space.
The lead director for the northwest for JLL, David Lathworth, commented:
“Each year we look at the UK’s big six regional centers, and it’s clear that Manchester isn’t just already outperforming other cities but that the opportunities in front of it are rich and diverse.
“This year, it’s also clear that Brexit uncertainty hasn’t had the same impact on occupier sentiment than it has in other areas of the country. The fact that we’ve had another record-breaking year of office take-up means the priority for the market now is ensuring that development rates can keep up.”