Manchester's skyline has undergone a dramatic transformation in recent years, with cranes and towers rising across former industrial districts. The city's population is growing as university graduates move in search of employment opportunities in the tech and media sectors.
Investors are taking notes, but it can be challenging to determine where to focus with all the new transportation links and employment clusters. In this guide, we'll suggest our top areas to invest in property this year.
Key Investment Areas to Watch
Ancoats, once a forgotten mill district, is now a fashionable neighbourhood with canal-side cafés, co-working spaces, and boutique apartments. The Cutting Room Square area is especially popular among young professionals thanks to its dining options and modern apartments within walking distance from Piccadilly and the Northern Quarter.
Salford Quays, home to MediaCityUK, is another magnet for investment. With ITV and the BBC's offices, the area offers solid long-term demand. Recent developments such as Eda and Anchorage Gateway have brought hundreds of premium units with in-building gyms and co-working spaces. These units also offer multiple Metrolink stops and are proving popular with young renters.
What to Consider Before Investing
The demand for apartments to rent in Manchester is particularly high among students and young professionals. These demographics typically prefer central locations with easy access to public transportation and high-speed internet. By investing in modern apartments, you'll be more likely to start getting strong monthly returns sooner.
Location is just as important in Manchester as everywhere else in the UK. Apartments in areas with a range of local amenities, including supermarkets, cafés, and gyms, make day-to-day life simpler, thereby increasing tenant satisfaction and reducing void periods. Areas close to university campuses and hospitals tend to attract students and key workers. Places undergoing regeneration tend to offer stronger capital growth.
Long-term Outlook and Tips
Despite the apartment boom, Manchester's annual population growth exceeds the number of planned new homes. This undersupply, combined with the development of the tech, media, life sciences, and finance sectors, will likely keep rental demand high in the coming years.
Manchester has high average gross rental yields of 6.35 to 6.5 per cent, much higher than the England and Wales average of about 4.75 per cent. Fallowfield has the city's highest rental yield, with a 10.6 per cent return. It has a high student population of over 100,000, resulting in consistent rental demand and minimal void periods, which are likely to continue for the foreseeable future.
The city has several emerging areas driven by infrastructure improvements and major regeneration projects. Mayfield is set to create a new neighbourhood between the city centre and the universities. With the predicted 13,000 new jobs, the £1.5 billion mixed-use development is expected to appeal to professionals and students.
While fringe areas like Miles Platting or Ardwick offer lower entry prices, they carry more uncertainty around tenant profiles and resale timing. Locations like Ancoats and MediaCity may cost more upfront, but they provide greater stability and quicker rental turnaround.
