In what is slowly becoming a trend, Manchester is currently experiencing an unprecedented ‘gold rush’ with significant foreign investment being poured into the city’s property market.
Foreign direct investment property projects are cropping up all across the UK, but Manchester is seen as the epicenter of this revolution. A survey conducted by EY suggests that 98 FDI projects were recorded in the North West last year alone, making it the largest number noted in more than a decade. The EY UK Attractiveness Survey also indicates that 54 of these 98 projects were initiated in the city of Manchester.
The region has seen increasing numbers since 2014 when 45 FDI projects were announced, but the recent 118% spike is resulting in some of the world’s biggest consortiums like Amazon.com, ALDI Group and HGS Europe gaining a foothold in the market.
It’s all smooth sailing at the moment for the property sector with the entry of giants from the software, business services, construction and retail industries giving rise to a whopping 4,026 new jobs, which is in turn bound to create substantial demand in the housing sector to satisfy the needs of the ever increasing workforce.
Peter Izard, Business Development Manager at Investec, said: “London still remains international investor’s choice, having a strong and safe political climate, safe title.
“It remains the international financial services center of the world. Brexit uncertainty is not a major issue for international buyers and could as easily bring as many positives as negatives.”
It’s not hard to imagine why foreign investors see Manchester as an attractive option for investment; a combination of “favorable capital and rental growth” makes it striking prospect.
JLL’s February 2017 Northern England Residential Forecasts report branded Manchester as “one of the hottest residential markets in the UK”, predicting 15% faster growth by 2021 in property prices as compared to the rest of the UK. This comes at the back of a documented increase of 30.8% between 2014 and 2016. To add to the enticing property value increase predictions, investors can also expect to see a rental growth of 20.5% over the next four years. Other factors that are encouraging international investors include the drop in Sterling value in the past few months. This means most overseas buyers are paying cash as compared to UK investors who traditionally prefer financing and a mortgage. Asia has been one of the most frequent stakeholders in Britain’s property sector, accounting for a total of 28% of UK property transactions in 2016.
Indeed, such is the demand for property in Manchester at the moment that reports suggest several parts of the city as starved for supply.
Ronald Garrett, Director of Sales at Alliance Investments reiterated his belief regarding Manchester becoming the preferred destination for FDI projects “Manchester is seeing unparalleled international investment being poured into its property sector. This was the trend in 2016, and this is what we believe will be the trend going forward in 2017 and beyond.”
“The continuous rise in property values and the promise of excellent returns in the form of rental income are resulting in increased confidence from overseas investors. We are actually experiencing a lack of supply.’’ He added.
Alliance investments, global sales division of Property Alliance Group offers an array of prime properties in Manchester that fit every need and budget. To explore the portfolio of properties available, log on to their website www.alliance-investments.com.hk