UK Property Development & Investment News - Alliance Investments

Why Manchester is the UK’s most dynamic growth city in 2025

Written by Alliance Investments | Aug 14, 2025 1:22:17 PM

Manchester has been named the UK’s fastest growing city economy in 2025 by EY ITEM Club, with 2.1% annual GVA growth predicted for the next three years. This is the country’s most dynamic growth city and the best years are still to come.

Andy Burnham, Mayor of Greater Manchester, said: “Our first decade of devolution has shown how much we can achieve by working together. We’re the UK’s fastest growing economy and stand on the cusp of what I believe could be our best decade since the Victorian era.”

Manchester’s limitless potential makes it the number one destination in the UK for families, young professionals and students who want to be where the future is happening. But what does that look like exactly? And how does it affect the city’s property market?

The city of regeneration

Evidence of Manchester’s ongoing transformation is easy to find. Simply walk around the city and you can see that the economic growth is built on a network of regeneration masterplans enhancing almost every area of the city centre.

Those include:

  • Mayfield – 1,500 homes, 1 million sqft of office space, a hotel, 6.5 acre park, retail and leisure space.
  • Victoria North – 155 hectare redevelopment, 15,000 new homes, public spaces, transport links, retail and office space, parks.
  • Old Trafford – Stadium renovation, 15,000 homes, 42,000 jobs
  • Strangeways and Cambridge Street – 320 acres, 1.75 million sqft of commercial space, 7,000 new homes, new urban park.
  • Great Jackson Street – Skyscraper district bringing 6,000+ new homes over 17 years
  • First Street – 750,000 sqft of new office space, residential developments and cultural hubs
  • Central Retail Park – Nine-storey office development, new urban park, 6,000 jobs, new retail spaces.
  • Sister - £1.7bn innovation district, 2 million sqft of office space, 10,000 jobs, 1,500 new homes, new public spaces.

More is being announced every year, and together they point to a bright future for Manchester. The city has so much energy and potential that people and businesses are queuing up to move here.

Transport investment that drives economic growth

One of Manchester’s outstanding features is the city’s transport network. Decades of investment in the UK’s largest light rail network outside London have given Manchester a huge advantage over competitors.

Reporting in The Mill suggests that Manchester’s rapidly growing productivity is likely to be linked to the Metrolink tram expansion programme. No other city in the UK has achieved comparable productivity gains in the past 15 years – meaning that Manchester is working smarter, more effectively and to greater economic gain than it ever has before – at least £13.5bn per year if forecasts are correct.

We expect that future transport investment will continue boosting the city’s economy, including a £2.5bn award from the government. The Bee Network project is bringing transport networks back into public control and will be a key driver of the Greater Manchester Transport Strategy 2040.

Projects include:

  • Tram network expansion – Plans are in place to expand the tram network to Stockport, Airport Terminal 2, new stops in Oldham and Bury, and stops at new regeneration areas.
  • National Rail integration – National Rail stations will be integrated into the Network to make travelling more convenient and affordable.
  • Electric buses – Development of a 100% electric bus fleet to make transport green in the region.
  • Underground network – Andy Burnham has proposed a new underground transport network comprised of two lines that will free up above-ground space for further development.

Andy Burnham, Mayor of Greater Manchester, said: “This is a game-changing moment that will underpin Greater Manchester’s green growth for years to come. Building on our strong track record, we can now move at pace to deliver the next phase of the Bee Network – creating the UK’s first fully electric, zero emission integrated public transport system by 2030. 

“With a pipeline of major transport projects better connecting our towns and cities, and local rail lines brought into the Bee Network, our communities will be the first outside London to be served by fully joined-up bike, bus, tram and train travel.

 “Greater Manchester has had a decade of growth faster than the UK average. This funding – together with our devolved decision-making powers – can be the key to unlocking even more growth in the decade to come.”

Cultural investments inspiring people to choose Manchester for their future

Manchester isn’t just an economic hub and the high-quality jobs capital of the future. It’s also a world-class cultural destination which offers one of the best lifestyles available in the UK – now and in the future.

Notable projects include:

  • AVIVA Studios – A world-class, 13,350 sqm cultural space for new dance, theatre, music, visual arts and performances.
  • First Street – An arts hub, theatre and cinema in the heart of the city centre that gets more than 700,000 visitors a year.
  • Greater Manchester Cultural Fund - £300,000 of awards to eight cultural projects including Hope Mill Theatre, the Castlefield Gallery, the Greater Manchester Sustainable Arts Network and more.

Councillor Neil Emmott, Greater Manchester Lead for Culture, said: “The Collaborate fund is all about connection - bringing together communities, local authorities, cultural organisations and individuals to work in new and creative ways. This investment is a great example of how we can use culture to build stronger partnerships and tackle shared challenges. 

“By supporting collaboration across sectors and places, we’re helping to create a more inclusive and joined-up cultural landscape across Greater Manchester.” 

More high quality jobs for a growing population

Manchester’s population is growing fast. The City Council has forecast that more than 630,000 people will live in the city by the end of the decade, and 100,000 of those will be in the city centre.

That means population growth of 7,000 people each year, and is on top of 19% overall population growth over the last Census period.

That population growth is being driven in large part by all the investments that are creating high quality jobs in desirable sectors. This is a diverse economy which is equally comfortable acting as a hotbed for start-ups and small businesses, or as a home for large national and multinational firms, such as the three quarters of the UK’s FTSE 100 companies which have a base in city.

That is leading to significant job growth as explained by Bev Craig, Leader of Manchester City Council: “Our GDP per capita has increased from £35,739 to £51,330. This has been accompanied by major development and regeneration projects across Spinningfields, Ancoats and New Islington, and Mayfield, to name but a few. With our Economic Plan seeing £11 billion invested over the next decade, creating at least 80,000 jobs.

“We have intentionally focused on growing our global strength in high-value, productive sectors, such as digital and tech, health innovation and life sciences, advanced materials, and manufacturing. We are a leading destination for FDI, have an annual £5 billion GVA fintech sector, are the second largest creative industries sector in Europe after London, and have emerging strengths in AI, cyber, and gaming.”

Manchester has a significant shortfall of available homes

The job and population growth is having a substantial effect on Manchester’s property market. The headlines are:

  • There are not enough properties to meet the current need
  • There are only just over 10,000 new homes completing by 2029 according to Deloitte
  • That is nowhere near enough to match the population growth

That is leading to major house price and population growth which will continue for the rest of the decade:

  • House prices up 29.4% in the region by 2029 (Savills)
  • House price growth of 25.7% in the last five years (JLL)
  • Rental growth of 45.9% in the last five years (JLL)

Manchester has huge growth potential, especially for luxury apartments in the most desirable areas. There is a shortage of supply and more people are moving to the city every year. Growth in house prices and rents is likely to be strong, and rental yields are forecast to keep growing.

Best investment property in Manchester in 2025

The best time to invest in Manchester is now. Premium apartments in Manchester city centre and closely linked regeneration areas offer the strongest growth prospects for both homeowners and investors. Manchester’s ongoing development and growth means that Manchester property for sale is a great investment.

Berkeley Square

Berkeley Square is a new luxury development located between Manchester city centre and MediaCityUK which combines the convenience of city living combined with wide open green spaces and a stunning waterfront location.

Berkeley Square comprises of 500 one-, two-, and three-bed apartments, phased across two buildings and located around a landscaped central square designed to promote wellness and a rich living experience.

It’s close to transport links, the city centre, some of Manchester’s most impressive regeneration sites and offers a premium lifestyle.

Learn more about Berkeley Square today.

Uptown

Uptown delivers the convenience of city living from a style waterfront location, offering an enviable modern lifestyle in Manchester's most sustainable new residential building. 

The three towers of Uptown create a stunning geometric pattern on the skyline, and provide best-in-class amenities for residents including a gymnasium, cinema room, stunning roof gardens and front of house service to make this a truly special residential experience. 

This development is complete and tenants are moving in, offering the benefits of a brand new development and immediate income at the same time.

Learn more about Uptown today.

Want to discover Manchester investment property for sale? Contact our team today to see our available investment opportunities and learn more about what makes Manchester the UK’s number one investment destination.