Manchester is one of the fastest rising cities in the country, but new developments could help it grow even further.
In recent years, few cities have seen the benefit of new developments and a swell in new residents quite as much as Manchester. The city’s Salford area in particular witnessed a real rise in property popularity and prices when companies like the BBC and other media firms moved north from London.
Manchester, as a result, became one of the hottest markets in property, with annual price rises recorded in the middle of last year of 6.8 per cent seeing it even outpace London. But the influx of new residents and the development of new modern properties offers more to the city itself than just rising property prices.
When regeneration such as that seen in Salford takes place, businesses are more likely to set up there, bringing jobs and funding to the area and helping to boost the economy. This is one of the major benefits of the rise in property development that the movement north of media companies brought to Manchester, and it could be about to see the story repeat itself as new properties are built in popular areas.
One such example is The Residence, a new project spearheaded by Experience Invest, which will bring purpose-built rental properties near to the city’s highly sought after Deansgate area, a very popular leisure location that has many positive characteristics likely to make it popular with young tenants, the so-called ‘generation rent’ who are most likely to seek out modern properties designed with the rental market in mind.
The development is located within walking distance from Victoria train station, making it ideal for those who have to travel to their place of work. However, it also offers tenants a fantastic opportunity to forge a great work-life balance with its proximity to Deansgate, an area that boasts great facilities in terms of shopping, dining and nights out.
The ability of new-builds to attract tenants is often cited as one of the main reasons for investors buying into such property projects. The Residence comes with a number of facilities that make it the ideal place for attracting new tenants, and subsequently making money.
The on-site gym, virtual golf and 24-hour concierge service perfectly complement the fully-furnished properties and aid them in becoming an attractive prospect for people looking for somewhere to live in the city.
And when they can secure assets at prices below market value, assure themselves a seven per cent return for three years, and be pretty certain that their property will attract tenants, meaning lower void periods, it becomes an easy choice for buyers to make to invest in places such as The Residence.
This could mean that over the course of the coming months, we see a swell in property investment in the city, as buyers try to get themselves a piece of the action with some of the best purchasing perks around, improving the number of rental homes available and keeping the rental market as fluid and healthy as it has been for a number of years.
However, the real benefit comes to the city as a whole, and with the ways in which The Residence can boost Manchester’s economy. An immediate swell in the volume of people choosing to live in the area will mean more companies choosing to open shops, restaurants and bars there. It’s a trend we’ve seen in areas such as Coventry, Luton and Bristol in recent years, and one likely to be carried on around any new development likely to attract aspirational young tenants.
So with the high-spec apartments of The Residence bringing new tenants to a new area of Manchester, the spread of popularity the city’s rental market enjoys will only be enhanced. For investors, this will mean a likely rise in rental prices as tenants flock to new areas.
And for the city of Manchester as a whole, it will mean a rise in commercial investment, more money flooding into the economy, and a rise in job numbers in a potentially short period of time, proving just how important the development of high quality new purpose-built properties can be.