Since Brexit, investors from Asia have been very keen to secure property investments in Manchester due to the high return on investment offered by the city’s real estate.
Summary:
- A new wave of Asian property investment is set to focus on Manchester
- The city offers less expensive properties and higher yields than London
- Manchester also has strong supply and demand dynamics – particularly among the younger rental generation
Both domestic and overseas investors are craving property in Manchester.
Demand is particularly high from investors from Asian countries, with many international buyers now realising that the northern city rivals and often outperforms real estate assets in London.
Victor Li, a Director of International Project Marketing for CBRE, highlighted that since Brexit lowered the value of sterling by more than 10%, investors from China and Hong Kong have been very keen to expedite property purchases in the UK.
“I got more calls – they want to go back into the market. It’s lots of saving,” he added.
Neil Jensen, a Hong Kong-based Regional Director for estate agent Fraser & Co, said the next wave of Asian investment will land in Manchester, Liverpool and Birmingham.
“Those seem to be the hotspots,” he confirmed.
One veteran Hong Kong investor told the Guardian: “You buy a large number of properties, but lower-priced ones … You pay something like £200,000 or £250,000, rather than £1 million for zone one in Mayfair, places like that.”
A recent insights report by IP Global also found that Manchester is currently one of the strongest UK property markets particularly for investors looking for high yields.
Jonathan Gordon, Director at IP Global, said: “For domestic and overseas investors Manchester properties offer very attractive rental yields and with demand expected to increase significantly over the next five years I am confident that this is a trend that is set to continue.”