Heightened corporate activity helps boost city centre property prices

Moves by national firms to establish headquarters, or expand their existing offering in Manchester, is helping drive sales and rental prices in the city centre property market.

Real estate services specialist JLL said its average sale price in Manchester city centre and Salford Quays rose by 22% in 2021.

The firm revealed that average prices rose from £322,856 to 3392,469.

The biggest price increase was seen in two-bed properties, with prices rising by 15%, from 2020 to 2021 and by 68% over the past five years.

Average monthly rent grew by eight per cent, particularly in two-bedroom properties, which, again saw the biggest rise at 10.5%.

So far, JLL said 2022 has got off to a strong start, with 35 lettings and 40 sales agreed by in Manchester city centre.

Oliver Dolan, director in residential agency at JLL in Manchester, said: “Manchester’s residential market remains as resilient as ever thanks to the strength of its business offering, unrivalled culture and nightlife and infamous sense of community.

“It has become a real rival for London with a vibrancy and lifestyle that’s hard to replicate, while also offering relatively better value in terms of cost of living.”

He added: “Indeed, we’d expect the trend for people relocating to the city in pursuit of a better quality of life to continue this year and beyond.

“This has been bolstered by a growing number of national firms moving their headquarters here, or expanding their existing presence, which has driven a significant uptick in demand for properties, both for sale and rent, among young professionals.”

He said during 2021, Manchester saw a 31% rise in the take up of office space, with much of this Grade-A helping staff retention rates as people enjoy working in these high spec spaces: “As a result, we’re also seeing more and more graduates choosing to remain in the city and make it their permanent home.

“With more major employers moving into the city and further investment into the retail and hospitality sector expected this year, there remains a great opportunity for developers – particularly those that are able to embed placemaking, green space and a sense of community into their offering.”