Manchester has retained its position as the highest-ranked English city for property investment, according to Colliers’ latest Top UK Residential Investment Cities report for the second half of 2024.
The Northern Powerhouse hub ranked third overall in the UK—behind only Edinburgh and Glasgow, which continue their three-year streak at the top.
Colliers’ analysis focuses on five pillars—economic, research and development, liveability and culture, property, and environmental factors—to guide investors on where to channel their funds. The new findings mark the eighth release in the series, with Manchester achieving its strongest standing so far.
Thriving economy, rising population
The report praises Manchester’s “world-class city region” status, pointing to an £80 billion economy, convenient global transport links, and a robust supply of premium commercial spaces. Office take-up in 2024 reached its highest total since before the pandemic, with a major 200,000 sq ft deal sealed by BNY Mellon. Major players such as JP Morgan, Octopus Energy, and Rolls Royce have also established new bases in Manchester in recent years, fuelling job creation and underscoring the city’s appeal.
That influx has in turn boosted demand for homes, helping propel Manchester to second-highest house price growth among the 20 cities Colliers assessed. The firm forecasts that Manchester’s population will rise faster than any of the other UK cities in the study—an expected 1.07% per year over the next decade—underscoring the city’s expanding workforce and housing needs. The economy is forecast to grow by an annual 2.2% through 2029, with unemployment averaging just 3.7%.
R&D credentials
Colliers also highlights Manchester’s status as a top R&D location, ranking the city fifth in that category thanks to “positive net business creation.” The second-largest student population outside of London also helps shore up R&D strength, particularly with the University of Manchester achieving 22nd place in the 2025 University League Table.
‘Strong fundamentals’ for residential investors
Manchester’s appeal goes beyond its economic clout, as Colliers notes a “flourishing cultural and leisure scene” supported by world-class art, music, sport, and festivals. Moreover, the city’s proximity to the Peak District, Lake District, and North Wales adds to its lifestyle advantages for prospective residents.
These factors have cemented Manchester’s position as a leading property investment hotspot—offering a more affordable alternative to London with a promising outlook on both capital appreciation and rental potential. While the UK housing market overall has been in a “holding pattern,” Andrew White, Colliers’ head of UK residential and international properties, Asia, expects that shifting economic conditions in 2025 may spur new activity and potentially alter affordability dynamics across the country.
For now, investors looking for strong growth, robust tenant demand, and lively cultural surroundings will continue to find Manchester a top contender among England’s property destinations.
