When people ask me which UK city I’d back for property investment right now, Manchester continues to sit firmly at the top of my list. It’s not just a passing trend or marketing spin, the fundamentals behind the city’s growth are incredibly robust, and 2025 is shaping up to be another standout year.

A City Still Transforming

What excites me most about Manchester is how much of the city is still evolving. Over £10 billion worth of regeneration projects are either underway or in the pipeline, completely reshaping the landscape. The Victoria North masterplan alone will deliver 15,000 new homes over the next 15 years, creating an entirely new neighbourhood just north of the city centre. Add to that schemes like Mayfield Park, Manchester’s first new public park in over 100 years, and landmark developments such as St Michael’s and Viadux, and you start to see why Manchester feels like a city in constant motion.

An Economy That Outperforms

Beyond the skyline, the economic story is equally compelling. Manchester’s economy is forecast to grow by over 2% per year between now and 2027, outpacing most UK regions. The city has become a magnet for global businesses, particularly in tech, media, and financial services, while the life sciences sector has more than doubled in recent years. This level of economic diversity creates resilience and drives the demand for housing at every level, from entry-level rental apartments through to high-end city centre homes.

Demand That Outstrips Supply

This is the piece that investors often underestimate. Manchester’s population is projected to reach 635,000 by 2026, and with Greater Manchester already home to around 2.8 million people, the city continues to attract young professionals and graduates who stay long after finishing their studies. Rental demand is exceptionally strong: in the city centre, yields typically sit around 6–7%, with some pockets exceeding 8%. Despite the number of cranes on the skyline, delivery of new housing is struggling to keep up with demand, which underpins both rental growth and long-term capital appreciation.

Why the Next Few Years Look So Promising

Looking forward, forecasts suggest Manchester will see around 20–30% house price growth by 2029, among the strongest anywhere in the UK. With billions being invested into regeneration, infrastructure, and transport links, including the ongoing expansion of Metrolink and planned improvements through the Northern Powerhouse Rail project, Manchester is only partway through its transformation. For investors, this creates a rare opportunity: strong yields today, paired with the potential for sustained capital growth over the medium to long term.

Final Thoughts

Manchester isn’t just another regional city, it has become the UK’s true second city in terms of investment opportunity. The combination of regeneration, economic strength, and sheer demand for housing means the fundamentals here are some of the best in the country. For me, Manchester remains one of the most exciting places to place capital in 2025, and I don’t see that changing any time soon.