The influx of foreign investment in the UK property sector has always been steady, with many overseas investors deeming UK as an extremely attractive investment destination. In recent times, the city of Manchester has come to the forefront as the hotspot for international investment, rising head and shoulders above its counterparts.
The leading players, when it comes to pouring investment into Manchester housing and commercial property industry is the Asian contingent including the likes of China and Hong Kong.
Juwai.com an online property portal for Chinese buyers looking to invest in property abroad, said that in November 2016, the number of Chinese inquiries into Manchester based properties was a whopping 53.8 percent higher than the same month last year. If reports are anything to go by, there was an estimated £2.1bn worth of development projects that consisted of Chinese involvement in 2016. Research from property investment firms also indicates that Asian investors accounted for 28% of the transactions in the UK property market in 2016, up from the 17% the year before.
At a time when Brexit is projected to deter foreign investment in the UK, it may come as a surprise to some that the complete opposite has transpired. A closer look at the statistics of Manchester’s property boom shows exactly why foreign investors are excited at the prospect of capitalizing on the said gold rush.
One of the major reasons behind the upsurge in international investment is the Sterling 20% devaluation since the EU referendum, which has attracted stakeholders seeking more bang for their buck from around the world. The devaluation also encouraged first time foreign buyers to commit to buying a home or property, with 1,800 of Manchester 28,000 newly built homes valued at between £200,000 and £500,000, being snapped up by first time buyers.
Manchester- The Unofficial capital of the purpose-built rental sector.
A combination of favourable capital and rental growth has made Manchester a striking prospect. In February 2017 Northern England Residential Forecasts report predicted 15% faster growth by 2021 in property prices as compared to the rest of the UK. This comes at the back of a documented increase of 30.8% between 2014 and 2016. To add to the enticing property value increase predictions, investors can also expect to see a rental growth of 20.5% over the next four years. A survey conducted by EY suggests that 98 FDI projects were recorded in the North West last year alone, making it the largest number noted in more than a decade. The EY UK Attractiveness Survey also indicates that 54 of these 98 projects were initiated in the city of Manchester. The message seems to be loud and clear, Manchester has managed to rebrand itself as the unofficial capital of the purpose-built rental sector in Britain.