Manchester is at the centre of an unprecedented development boom. With high rent yields and affordable prices, it has quickly become a magnet for investors. We highlight the areas to watch and explore the bigger trends in property investment Manchester is currently experiencing.
If you happened to catch the BBC’s four-part Manctopia series, you’ll know that Manchester is now one of the UK’s fastest growing cities. In a single planning session in September 2020, Manchester councillors approved more than £1 billion of development for construction. Hundreds of millions of pounds have continued to pour into Manchester since then, as the city completely reimagines itself.
With Manchester’s population expected to double within five years, this is a growth explosion that needs a property construction boom to support it. So, which parts of Manchester city centre and the Greater Manchester area should property investors be looking at? Let’s explore some of the areas set to benefit most from the property investment Manchester is currently attracting at a record rate.
Where to buy in Manchester: Development Hotspots
City Centre
The heart of Manchester is also, unsurprisingly, at the heart of the construction boom. Here you’ll find many of the biggest headline property development projects in progress, with new ones breaking ground almost monthly.
2020 saw the approval of a £300 million co-living development on First Street that plans for 2,224 bedrooms across four blocks including a 45-storey tower. At the same time, the green light was given to a £222 million, 350 apartment co-living tower on Water Street.
These are just two examples of how the city centre is attracting huge investment across a widening range of projects. With another 600,000 people to house before 2026, the need for housing isn’t going anywhere.
Media City
The new home of the BBC, ITV and a host of other media companies, Media City is one of Manchester’s biggest success stories. The arrival of these internationally recognised names has brought with it the need for masses of new housing, restaurants, shops, transport infrastructure, parking and more.
Phase 1 of Media City was delivered in 2011. Phase 2 began construction in late 2021, and promises to be a massive undertaking – doubling the size of the original site. This is a £1 billion expansion plan delivering 1,800 new residential units and 50,000m2 of new office space.
Eastlands
East Manchester has been on a transformation journey for the last three decades. At the heart of its renewal was the construction of the Etihad Stadium and the surrounding sporting complexes that make up the Etihad Campus. Successive rounds of investment in the area have followed, prompted again by Manchester Council’s Eastlands Regeneration Framework (ERF 2017).
This has seen thousands of new homes spring up, along with commercial districts and high-quality infrastructure. 2020 saw plans approved for a new £350 million music and indoor sports arena to be built next to the Etihad Stadium. This is another big win for the Eastlands’ development prospects, with plenty more investment likely to follow.
Ancoats
This is a thriving area that established itself as one of the city’s hotspots for creative, digital and tech-based companies. The council wants to repeat the phenomenal success of regenerating the “front end of Ancoats” with new plans for the Poland Street area (“the back of Ancoats”).
The plan is to transform it into the same kind of high-quality, housing and office space developments seen in the rest of the neighbourhood. Alongside high-rise rental apartments and offices, there are also sites being identified for much-needed affordable housing. There are also ongoing plans to turn the £37 million Central Retail Park plot into a green neighbourhood.
New Islington
Right next to Ancoats, New Islington is also getting the urban renewal treatment in a big way. New housing prospects include Lampwick, a 213-home development with a 5,000-square-foot commercial element. You can also see Urban Splash’s Mansion House and 17 new townhouses under construction on Piercy Street.
Plans are also in motion to redevelop New Islington Green with five 8-storey office buildings and a £5 million park. The plan is to strengthen New Islington’s links with Ancoats and emulate its success in creating desirable homes and jobs with creative/tech companies.
Piccadilly Gardens
This is one of the many up-and-coming areas in Manchester, one that deserves increasing attention. Companies are investing over £75 million in new housing developments currently in the area. The Crusader Mill and Phoenix developments offer 200 apartments for sale between them.
There’s even been a £2 million allocation by the council to undertake a long-overdue renovation of Piccadilly Gardens. This well-worn public square is getting a major facelift, with improved lighting, repaired paths and a new children’s play area.
Property investment: Manchester’s highest-rated new homes to buy
*Please note, the following are the top 5 rated developments on HomeViews that offer homes for sale. i.e.: excluding ‘rental-only’ developments.
2023 Update: Peaks and troughs for house prices in several areas of Greater Manchester
While Manchester’s property development star is on the rise, some parts of the market slowed down in early-mid-2023, in response to rising interest rates and buyer hesitancy. In some parts of the Greater Manchester area, house prices were even falling.
- In Altrincham, a pretty market town with many of the region’s best schools, prices dropped 8% year on year to May 2023.
- Collyhurst saw house prices drop a massive 19% from mid-2022 levels. They were 13% down on the 2020 peak of £210,205.
- The Tameside village of Broadbottom also experienced an 8% drop.
- The Bolton town of Westhoughton had a 5% drop between March and May this year.
- Even Castlefield, in Manchester itself, saw house prices drop 13% between May 2022-2023.
However, late 2023 has seen prices bounce back across Manchester itself and much of the Greater Manchester area. In Manchester, average house prices for 2023 are just shy of £242,00. If you compare this with 2000 levels, it’s a 481% rise over the 23-year period.
Before committing to an investment move in 2023, be sure that you are aware of the current landscape in Manchester and the Greater Manchester property market. While the overall trend of growing supply and higher house prices remains intact taken over a broader view of years, there is some a fair amount of instability in the air when it comes to certain projects and their timelines.
Overall though, the Manchester property market remains vibrant and there are plenty of investment hotspots to be found across the city and the Greater Manchester area. Check back on this post, since we regularly update it to reflect what’s happening in the market.
If you want to explore more of what Manchester has to offer, check out our full area guide. Here you’ll find out more about the up and coming areas in Manchester and what it’s really like to live in different property developments across the city.
HomeViews provides verified resident reviews of the UK’s housing developments. We’re working with developers, landlords and the Government to recognise high performers and help to improve standards in the built environment.
