While there has been agreement that Manchester is a city well worth investing in property, it appears that word has spread far and wide about the attractive nature of the city. This can be seen in the increasing volume of Chinese investors who are ignoring the real estate market in Hong Kong and investing their money in other countries. It is not just Manchester that is benefitting, locations like Dubai have also experienced an increase in Chinese investors, but many local residents and potential property buyers will wonder what impact this has on the Manchester property market.
The key reasons why many foreign investors look to markets like the Manchester property market include:
- A lower price of entry
- A more attractive yield (compared to London and abroad)
- A more stable property market than foreign markets
- Expected capital growth in Manchester
These are all key factors in why Manchester has benefitted from foreign investment but it also needs to be remembered that Manchester is a leading hub for global travel. There are regular flights between Manchester and the Far East, so any property buyer looking to travel around their properties will find that Manchester is a great place to invest in.
The Manchester student population provides investment opportunities
There is also the fact that the student options in Manchester are very attractive, which means that many foreign investors looking to buy homes for their children to study in the UK will be attracted by the city. Even if the property purchase is just about investing in property, the student population of Manchester provides a very sensible reason to buy.
It is important to remember that there are different types of property investment and the engagement of the investor will have an impact on the local community and economy. London has experienced a significant level of foreign investment in property but many of the flats, houses and apartments are lying empty. For many investors, buying property and then leaving it as it is can still represent a return on their investment with no additional outlay or stress. This can be an attractive way to invest funds for many investors and it is inevitable that some investors buying Manchester properties will follow a similar approach.
Even if the investors do take up residency in the Manchester properties, an impact will be felt by people switching to other areas in the city. If the city centre remains the focus of Chinese investment plans, areas like the south of Manchester could see a further rise in demand for property. Of course, the south of Manchester, close to the airport, has already seen a rise in demand for property and there are many executive areas in this part of the city.
There are many reasons why investing in Manchester based property is a smart investment so it is no surprise to learn that savvy Chinese investors are enjoying the Mancunian marketplace.