Introduction:
New research conducted by global real estate advisor CBRE has pinpointed Bristol and Manchester as the UK's top cities poised for significant growth across multiple property sectors over the next decade. The findings highlight the immense potential for property investment in these thriving locations. Magnate Assets explores the key factors driving growth and investment opportunities in Bristol and Manchester.
CBRE's 'Which City? Which Sector?' report analyzed 12 real estate sectors across the 50 largest regional towns and cities in the UK, taking into account various economic drivers and property market data. The study considered factors such as GDP, employment and income growth, demographics, supply pipeline, local universities, and housing affordability.
Promising Prospects in Bristol:
Bristol is projected to experience impressive growth, with an expected 3.6% population increase, 5.6% employment growth, and a 13% surge in office employment over the next decade. The city ranks within the top five for potential growth in multiple sectors, including office, retail, urban logistics, student accommodation, multi-family housing, single-family housing, affordable housing, senior living, leisure and food and beverage, and self-storage.
Manchester's Multifaceted Appeal:
Manchester, renowned for its diverse industry base, thriving retail sector, and vibrant tourism and hospitality industries, stands out as a city poised for significant growth. With one of Europe's largest student populations, Manchester ranks among the top five for growth in major sectors such as office, retail, urban logistics, student accommodation, multi-family housing, single-family housing, affordable housing, senior living, leisure and food and beverage, self-storage, and life sciences.
Additional Growth Hotspots:
The research also identified other cities and towns showing strong growth potential across multiple sectors. Brighton, with its projected employment and disposable income growth, ranked in the top 10 across more than half of the sectors examined. Leeds stood out for its favorable prospects in the office and retail sectors.
Scottish Cities on the Rise:
Edinburgh and Glasgow emerged as leading growth markets in Scotland, ranking in the top five for major sectors like student accommodation, offices, and hotels. Edinburgh secured the fourth spot for expected growth in the life sciences sector, while Glasgow ranked sixth.
Expanding Office Markets:
Manchester, Birmingham, Bristol, Edinburgh, and Glasgow were highlighted as the top growth markets for the office sector. Birmingham and Manchester, in particular, anticipate the highest forecasted growth in office-based employment, while Birmingham and Edinburgh benefit from highly educated talent pools. Liverpool and Southampton are also expected to witness significant growth in this area.
Opportunities in Urban Logistics and Life Sciences:
Locations with high online penetration, access to high-speed internet, and projected population growth among age groups inclined towards online spending demonstrated the greatest potential for urban logistics spaces. Additionally, the research highlighted the substantial growth of the life sciences sector outside the traditional Golden Triangle locations of Cambridge, London, and Oxford. Manchester, Edinburgh, and Birmingham emerged as markets to watch.
Thriving Living Sector:
The living sector, encompassing multi-family housing, single-family housing, student accommodation, affordable housing, and senior living, has experienced remarkable growth in recent years. Manchester, Bristol, and Birmingham were all ranked among the top five cities for potential growth in these segments, highlighting attractive investment opportunities.
Conclusion:
CBRE's research positions Bristol and Manchester as the UK's highest-growth cities across various property sectors. With favorable economic indicators, diverse industries, and increasing demand, these cities offer lucrative opportunities for property investors. Magnate Assets advises investors to explore the potential of these dynamic markets and capitalize on the forecasted growth in Bristol and Manchester's real estate sectors.