How Manchester is capitalising on its popularity with residential and commercial growth

Residential and commercial growth

The housing market in Manchester remains resilient despite challenging conditions. It is witnessing the impact that low supply and a rapidly increasing population can have on values, both from a rental and sales perspective.

While we cannot ignore the effects that the higher interest rates had on the UK housing market, Manchester has set itself apart. The city has everything from apartments for first time buyers to family housing to ultra-exclusive branded residences. Factors such as low unemployment and a young and thriving student population have allowed the city to weather wider challenges.

The area is set to see the highest regional house price growth in 2025 according to Savills data. Supply of residential property remains low, which will continue to underpin value growth over the next few years. The North West is expected to be the strongest performing region in the five years to 2029 with house prices to increase by 29.4% compared to a UK average of 23.4%.

From a commercial perspective, office take-up in Manchester during the first quarter of 2025 was 79% higher than the same period in 2024. Recent office transactions in Manchester included BNY Mellon taking space at Angel Square and S&P Global, Arm and Channel 4 moving into St Michael's.

Reasons to move

Firstly, there’s a relatively lower cost of living compared to other areas of the country, meaning there’s a large pool of talent living in the area. That, coupled with the exceptionally strong educational offering from the city’s colleges and universities, also results in the highest graduate retention rate outside London at almost 50%. The universities themselves support innovation and enterprise through incubator facilities, like the University of Manchester’s Innovation Factory.

Businesses are becoming more aware of the talent that exists in Manchester and are increasingly returning to the concept of “north-shoring”, moving all or part of their operations to the North. That’s not necessarily as an alternative to having a London HQ, but rather it’s a way of tapping into the excellent opportunities that Manchester offers. The city’s transport infrastructure also helps the move, with its ease of connection to the rest of the UK and beyond.

There’s a lower cost of doing business in Manchester too. Rents for office, retail and industrial space are rising but are still much lower than in the South, and salaries are often slightly lower. The pool of talent is a viable alternative to the South East, being relatively cheaper and proven to be “stickier” as workers tend to stay in their roles for longer, reducing rehiring costs. Staff and rent are two of the biggest overheads that a business typically has, and we’re seeing that reducing them by moving is proving to be popular.

The city is already home to businesses of all shapes and sizes, from global technology firms to small retailers, who are reaping the rewards of a dynamic and successful city. In the space of 20 years Manchester has transformed from a large regional conurbation to an internationally recognised location. The reasons for its popularity are clear, and we’re looking forward to welcoming more people, businesses and investors to the city.

Further information

Contact James Evans or Jamie Adam

What makes Manchester the place to invest in property?