The economy in Manchester is booming and this is likely to continue having a significant impact on the city’s residential property market.
According to Colliers International 806,024 sq. ft. worth of office space was taken up in Manchester’s commercial property in the first quarter of 2019. This represents a 54% increase on the long-term average. In other words, office take up in Manchester city centre is now at a five-year high.
Furthermore, it underlines the continued confidence in the city’s economy, with Manchester boasting one of the UK’s most active business and commercial sectors.
Designs for a major 20-acre new commercial development called ‘Noma’ in the city centre were submitted earlier last month. The two office blocks will accommodate 3,500 workers in a prime location in the city of Manchester.
According to The Business Desk, this scheme has been increased in size, compared to its original proposals, “due to soaring demand and the strength of Manchester’s booming economy”. It reports that an extra storey has been added to one of the blocks.
For residential property investors in Manchester, this confidence in the commercial sector should prove to be welcomed news.
At a time when the population of Manchester city centre is increasing 17% faster than the UK average, more businesses opening offices will inevitably rise the socio-economic levels in the region and increase this population further.
Many of these new workers will want to live in high-quality homes in the city centre. Close to their places of work, leisure hotspots and Manchester’s major transport hubs.
By 2022, residential housing delivery in Manchester will meet just 25% of annual demand. According to the city council Manchester’s population is expected to grow to more 650,000 by 2026, with 100,000 more people forecast to move into the city centre. Further tenant numbers will only add to the strain the residential property sector is already feeling, with supply struggling to keep pace.