Investors flock to England’s Manchester

City is seen as a more stable housing market than London

Dec.December 22, 2018 02:00 PM

Manchester Town Hall (credit: Wikimedia Commons)

Investors are pouring money into the English city of Manchester, which is seeing home values rise as companies expand their workforces.

Sovereign wealth funds, international real estate funds and domestic investment funds are increasing their presence in the city, Mansion Global reported.

The city has about 49,000 new homes in the pipeline, of which 19,000 are under construction, according to Cushman & Wakefield.

“As one of the (U.K.’s) largest financial centers outside London, Manchester has the ability to attract top grade companies and financial institutions,” a spokesman for Mapletree Investments, a subsidiary of the Singaporean sovereign wealth fund Temasek, told the publication.

Mapletree owns a number of student housing properties and one of Manchester’s largest office buildings.

“In addition, as one of the top destinations for local and international students in the U.K., the student housing market in Manchester is expected to remain as a resilient asset class,” the spokesperson added.

All that building has some worried about a potential bubble. Cushman projects Manchester home prices to rise 60 percent over the next decade, but the company doesn’t think prices will get dangerously high.

“Capital values are very different to London… where the perception is that prices get so great that actually the market begins to stagnate a little,” said Julian Cotton, an associate director on Cushman & Wakefield’s Manchester New Homes team. “I don’t think we’re going to see that; I think we’re going to see fairly consistent growth over the next 10 years in Manchester.”

Over in London, factors such as Brexit and housing oversupply have turned the city into a buyer’s market[Mansion Global] — Rich Bockmann

Related Articles

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

157 West 57th Street (Credit: iStock)

One57 condo with reduced ask tops a slow week of luxury contracts

Clockwise from top left: 730 Fifth Avenue, Unit #PH21; 730 Fifth Avenue, Unit #18A; The Pierre, Unit #3101; and The Park Imperial, Unit #64

Priciest homes listed last week include $60M pad at Crown Building

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

56 Leonard Street (Credit: iStock)

He invested more than $130M into 4 Manhattan condos. Now he’s taking a hit

Due to relatively high income levels and low transportation costs, New York City is the eight most affordable of 20 major cities (Credit: iStock)

NYC is the 8th most affordable big city in America*

53 West 53rd Street, 885 Park Avenue, 70 West 45th Street (Credit: StreetEasy)

Five priciest homes to hit the market last week all over $22M