As per latest reports, real estate investors from the Middle East are now eyeing Manchester which has become the second most coveted investment zone for this section of investors after London as far as the UK real estate market is concerned. Manchester has witnessed consistent and steady appreciation in property prices and this has helped it catch the eye of global investors including those from the Middle East as per reports. Manchester is the most popular British city for realty investments after London and attracts buyers now from Saudi Arabia, UAE and the entire Gulf Region.
Middle East investors have always had an affinity towards investing in real estate in London and other parts of the UK. Manchester is their new-found investment hotspot and this comes after property prices have increased sharply by approximately 7.4% annually till June 2018. Rental yields are now being seen as higher and more attainable in northern British cities as compared to London. UK cities are now chosen by Middle East and other global investors based on the overall capital growth and yields. Manchester ranks highly in this regard. London is increasingly becoming saturated and the higher levels of growth cannot be expected here in the mid and long-term at present. Prices could correct and yields are growing at a slower rate.
Manchester has lower supply levels and positive forecasts for price and rental growth alike. There is huge scope for global investors to foray into real estate in the city throughout this period of economic progress. Brexit has reportedly made UK property more reasonable in terms of pricing as per several global investors and their investment decisions are being influenced accordingly. The uncertainty due to Brexit has made pound values fall, thereby making property in the UK more affordable by around 12% which has attracted several global investors. They are betting big on future developments when negotiations are executed with the European Union and the economy in the UK begins stabilizing. This will lead to huge capital gains and returns on investments made now.