A recent report from CBRE, international property advice specialists, has put Manchester at the top of the UK league table for regional property investment. Manchester came in significantly ahead of other cities such as Glasgow and Birmingham in terms of capital invested over the past ten years.
In total, commercial property within Manchester has attracted £8.2 billion worth of investment in the last decade, making it the top destination outside of London by total volume of capital invested. It was followed by the likes of Birmingham, with £6.5 billion of investment in commercial property over the past ten years, and Glasgow, which attracted £5.3 billion for its commercial sector.
The report, titled Core Cities, Core Strengths, analysed twelve cities in great detail. In total, the twelve cities covered by the report have attracted £44.4 billion worth of investment in commercial property over the course of the past ten years. The report showed that over this ten year period, 60% of all the UK’s commercial property investment transactions took place in the regions outside London and the South East.
As well as the numbers, CBRE’s report looked at a number of factors that feed into a city’s popularity as a property investment destination. These included things like quality of infrastructure, qualities of live, leadership and governance, and the impact of growing sectors and industries. The report also looked at the matter of devolution, and at both the risks and the opportunities this could present. This is a particularly pertinent point for Manchester at present, as a number of powers and responsibilities are currently set for devolution to the city’s local government.
The report found that, as the UK and global economies continue to recover from the impact of the financial crisis, domestic and international investors are looking at ways to diversify their property portfolios. This has meant a move towards certain niche sectors such as purpose-built student property and healthcare. Such emerging property sectors currently account for roughly 10% of all UK investment volumes, compared to only 3% before the global downturn.
Diversification has also meant investors have been looking further afield for investments in geographical terms. This, along with the promise of cheaper yet higher-yielding properties, has been good news for the regions as many investors – especially international investors – have previously focussed very much on London and its immediate surroundings.
As one of the UK’s most important regional cities and a high-yielding market, Manchester has received a sizeable share of capital from investors moving outside of London and into the regions. Its growing popularity has also been fed by the Northern Powerhouse initiatives, which aim to stimulate and rejuvenate the North and its economic contribution to the UK. Once again, Manchester’s status as a major UK city has put it at the forefront when it comes to receiving the benefits and this has served to make the city all the more attractive to investors.
Author Bio
Hopwood House are property investment specialists, with a large portfolio of UK property investments including properties for sale in Manchester, Liverpool, Sheffield and Birmingham.
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Daniel Peacock