It is anticipated that the Greater Manchester economy could increase by a further £1.9 billion by 2023.
Greater Manchester is considered one of the country’s best and most dynamic regions. There have been billions of pounds of investment into the area dating back over 20 years. The result is a city on the up. In the last five years, the skyline has been transformed into a skyline second only to London.
Manchester is considered the place to be by large segments of the younger generations. There are many cultural offering from the city including a vibrant nightlife, a world-class music scene, as well as top sporting teams which include Manchester City and Manchester United.
This has resulted in a growing population, which is projected to increase for years to come. On top of this there are good universities and flourishing business sectors.
Now, the new UK Powerhouse report from Irwin Mitchell and the Centre for Economics and Businesses believes that even better times could be on the way for Manchester and its surrounding region.
The report examines the latest trends in foreign direct investment in the UK and analyses its effect on job creation and economic productivity using data from the Office for National Statistics and the Department for International Trade.
It looks at where this foreign direct investment is moving to in the UK and looks ahead to the end of 2023 to predict how that will impact areas in the UK. This report anticipated accelerated growth for Greater Manchester compared to the national average.
At £68bn, Manchester’s economy is already impressive. The report predicts that Greater Manchester’s regional economy will grow to £71bn by the end of next year. This represents a lot of growth in a small time period.
Fuelling that growth will be the creation of over 28,000 jobs, according to the analysis. This represents good news for the city and should create a positive circle of other businesses relocating to Manchester to benefit from its growth. There is an anticipated growth of high-value industries. These include advanced manufacturing, medical research, the higher education sector, digital and media, tourism and STEM-related industries.
The financial services sector is cited as a good example of Greater Manchester’s potential. It is already the largest sector of its kind in the UK outside of London, and with further investment, it could become a key factor in promoting and building Manchester’s economy for years to come.
Manchester has also become a major technology, digital and communications hub. Having been recently named the UK’s best tech city outside of London. With the current development of Salford Keys, we expect more industries to relocate to this revitalised part of the city. MediaCity at Salford Keys is undergoing a £1 billion expansion.
The Government and large industries are expanding operations into Manchester. GCHQ opening new facilities i along with Amazon, Cloud Imperium and other technology giants.
Bryan Bletso, a partner at Irwin Mitchell, said: “This latest UK Powerhouse report makes clear that Northern cities like Manchester have huge potential.”
“The Greater Manchester International Strategy report highlights the importance of working with the Government on the delivery of a new investment strategy. The incentives needed to drive additional FDI can unlock the strength of a region like the North West and deliver not just on the levelling up agenda, but the wider aim for a truly global Britain post-Brexit.”
He added: “The time to invest in Manchester’s success is now and by doing so, the corresponding economic growth and job creation will go a long way towards safeguarding future prosperity and making levelling up a reality.”
Manchester has experienced dramatic positive change over the past decade. With HS2 Manchester can expect a very positive future. HS2 will connect Manchester to London in little more than an hour. It is anticipated that many other businesses will relocate to Manchester due to better connections with the capital.
For investors in the Manchester property market, it looks like positive times are ahead. With the increasing prosperity of the city, property prices and rental returns are expected to increase for the foreseeable future.
Many analysts are projecting a rise in property prices of close to 30% in the next five years. Many of the best options are expected to be from the newly built property sector as there is a serious lack of supply in the current market.