Manchester Hotspots: Why the City Remains a Magnet for Property Investors

Manchester has long been considered the UK’s most dynamic regional city for property investment. A combination of sustained population growth, infrastructure expansion and strong employment prospects has helped position the city as the key northern rival to London in terms of both residential demand and investor interest.

The Case for Manchester in 2025

According to the latest ONS data, Greater Manchester’s population has now surpassed 2.9 million and is projected to grow by a further 5% by 2035. The city centre, in particular, has seen a dramatic transformation, with the number of residents quadrupling since the early 2000s as students, graduates and professionals increasingly choose to live in central locations.

The economic outlook remains robust. Manchester’s gross value added (GVA) has grown by over 20% in the past decade, outpacing the national average. The city is also cementing its position as a hub for tech, creative industries, financial services and advanced manufacturing. High-profile employers such as Amazon, PwC and Booking.com have expanded operations in the city, while Manchester Airport’s £1.3 billion transformation is boosting its global connectivity.

Rental demand reflects this momentum. Zoopla data shows that rents in Manchester rose by 12% year-on-year in 2024, making it one of the fastest-growing markets in the UK. Yields remain attractive, typically ranging between 5% and 7% in prime central developments, supported by a consistent undersupply of quality housing stock.

Emerging Hotspots Across the City

While areas such as Deansgate and the Northern Quarter remain established favourites, investors are increasingly looking to new regeneration districts where significant public and private investment is reshaping the urban landscape. Developments clustered around Victoria Station, the Civic Quarter and Ancoats are drawing particular attention, benefiting from transport links, new office schemes and cultural investment.

For investors seeking exposure to Manchester’s growth story, several new developments stand out:

• Obsidian
  Situated close to the city centre and key commercial hubs, Obsidian offers high-quality apartments designed for modern urban living. Its location ensures strong rental demand from young professionals, while investors benefit from a balance of yield and long-term capital growth.

• Vivere
  Positioned in a district undergoing rapid transformation, Vivere provides a mix of one- and two-bedroom apartments with a focus on contemporary design and community living. Its proximity to major transport links makes it particularly attractive to commuters and international tenants alike.

• Waterhouse Gardens
  A flagship regeneration scheme, Waterhouse Gardens is set within landscaped surroundings and incorporates amenities aimed at creating a residential destination in its own right. The scale of the project reflects the confidence in Manchester’s continued expansion, offering investors exposure to one of the city’s most ambitious developments.

A Balanced Outlook

Manchester’s fundamentals remain resilient, but investors should weigh considerations such as rising construction costs and the potential for interest rate shifts, which can influence mortgage affordability and overall yields. Nonetheless, demand consistently outstrips supply in the city centre, providing a cushion against broader market volatility.

For long-term investors, the opportunity lies in aligning with regeneration-driven growth and securing assets in high-quality developments that meet the expectations of a modern rental market. With strong population inflows, rising employment and ambitious infrastructure projects, Manchester’s position as a leading UK property hotspot looks assured for the decade ahead.

Photo by Khalil Ahmad Jamil