Back in 2015, Manchester Airport announced its 10-year plan which included a £1 billion investment to make the customer experience better, faster and more modern. Now, as more businesses migrate away from London and the Northern Powerhouse continues to become a property hotspot, investors need to make sure they’re ready to take advantage of a growing market.
The Manchester Airport Transformation Programme is estimating that once completed, it will be able to add an extra 10 million passengers each year and double job opportunities. One of the main upgrades is the renovation of Terminal 2, doubling its size to make it the airport’s main centre. Alongside this, the plans will improve the airport’s connections to the rest of the UK with a new train station built for HS2.
These developments are helping turn the Manchester into an international gateway. As the UK’s largest airport outside of London, with 220 direct destinations, it has been contributing huge amounts to the UK economy since 1938, reaching £1.7bn in 2018 as it enjoyed 7 years of consistent, post-recession growth. Alongside the new Airport City business hub and the increase in flights, this international access means businesses can’t ignore Manchester as a global hub worthy of investment, and you don’t have to look far for evidence.
Back in September, The Hut Group announced that they would be investing £760 million to construct a custom-built development covering 16.8 acres at Manchester’s Airport City. Valued at around £4 billion, The Hut Group is one of the UK’s largest private companies and the fact that they’re doubling down on Manchester just shows how confident they are in the opportunities and growth that the city can provide.
In an article by the Manchester Evening News, Matthew Moulding, Founder & CEO of The Hut Group said:
“As we continue to extend our global footprint, it makes sense for us to base our headquarters at Airport City in Manchester, with its global connections and access to talent and supply chains worldwide”
This shows just how strong the Northern Powerhouse is as businesses such as Amazon, HSBC and Microsoft have all opened offices in Manchester. As a growing hub for global business, the city can boast more affordable office spaces and plenty of property investment opportunities for those looking to make the most of this business shift away from London.
With London suffering from its own property bubble and Brexit uncertainty, Manchester has become a hotspot for property investors of all portfolio sizes. However, anyone looking to invest should do so soon as the city’s house prices have increased 15% since 2016 and seen capital growth of 7.4%, exceeding the UK average of 4.6%.
Currently, yields in Manchester are around 67% higher than those in London and with professionals looking to continue their careers in the North, investors should be looking for properties sooner rather than later. As companies continue to invest in Manchester, the city will only solidify its status as an international business hub.