In praise of Manchester prime property

Manchester is on a roll. Following the homecoming of Britpop icons Oasis, which created a huge buzz in the city in summer 2025, the Hollywood superstar and Nobu co-owner Robert De Niro was in town in November to break ground for the hospitality group’s new outpost – the highest residential tower in Europe.

There’s stardust aplenty these days in the northern powerhouse, especially in the city centre, where an evolving skyline of gleaming skyscrapers attests to a decade of economic renaissance. These city-centre schemes are a magnet for property investors in search of high yields and potential price growth – but they are also drawing young professionals, wealthy students and burgeoning families.

The northwest is expected to be one of the strongest-performing regions in the five years to 2029, with house prices projected to increase by 27.6%, compared to a UK average of 22.2%, according to Savills data.

Records are already being set. In July, a penthouse in the 40-storey Viadux development in Deansgate – near the foundations of the 76-storey Nobu tower – went for £3 million, the most expensive residential sale in the city.

Two months later, it was surpassed by a £3.5 million off-plan purchase at W Manchester, the city’s first branded residences. The 41-storey tower with five-star hotel amenities in Jackson’s Row is a collaboration between the former Manchester United footballer Gary Neville’s development company and Salboy.

While both of these properties were purchased by local buyers, the presence of such global brands is attracting attention overseas. “Manchester is known for its top football clubs, but these high-end schemes further put the city on the map,” says Jamie Adam, head of the northern new homes team at Savills. “The city is not just experiencing a residency-led boom. Every sector is on the rise – grade A office space, the dynamic hospitality industry with exciting new restaurants, and retail.”

Thanks to two decades of proactive leadership by the city council, Greater Manchester has seen the fastest economic growth in the UK outside London, according to the Office for National Statistics. Global companies such as BNY, S&P Global and Arm Holdings are tapping into a huge talent pool, fed by Manchester’s student population of 120,000 and a graduate retention rate second only to that in London.

Three60 Penthouse apartment living room

The four towers of Deansgate Square – 1,508 luxury apartments with the sort of high-end amenities that had not previously been seen outside the capital – fired the starting gun for the reinvention of the city centre, according to Adam. Renaker, Manchester’s leading high-rise developer, is also behind the striking cluster of towers in Deansgate’s New Jackson neighbourhood, including The Blade, Three60, Elizabeth Tower and Contour.

These are just a few of the 10,000 apartments that will be in construction by 2029, according to Deloitte – yet this is not enough to meet Manchester’s growing population, including the 100,000 people predicted to be living in the city centre by 2030.

The W Residences sold out before completion, while only a few of the 370 apartments at Viadux (penthouses from £1.7 million) – where the state-of-the-art amenities include a gym, spa, cinema, co-working space and concierge service – are still available. Along with Nobu Manchester – which will comprise a hotel, a restaurant and 452 branded residences – the developments are attracting what Adam describes as “right-sizing” buyers.

The city’s new penthouses can command rental rates of £7,500-£10,000 a month, says Adam. “These produce gross yields of 6.5%-7%.” And while historically, 80% of those purchasing city-centre new-builds have been investors, last year 35% were owner-occupiers. “They are choosing city-centre living rather than a detached house in Hale or Alderley Edge,” Adam explains. “A decade ago, this was not the case.”

There’s also a ripple effect, with regeneration and buyer demand spreading to Salford, Trafford, Sale and Stockport. In the words of Andy Burnham, the mayor of Greater Manchester, the next decade could well be the best for the city since the Victorian era.

JAMIE ADAM, HEAD OF NORTHERN ENGLAND RESIDENTIAL DEVELOPMENT SALES
Jamie.Adam@savills.com

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