Off-plan properties present investors with great opportunities to significantly increase their return on investment (ROI). As Liverpool and Manchester continue to fund their large-scale regeneration projects, more off-plan investment opportunities arise for investors to profit from these two city’s redevelopment projects. As the UK property market continues to evolve in an uncertain way, Liverpool and Manchester offer certainties to investors. This article will explore why Liverpool and Manchester are prime locations for off-plan investments leading into 2025.
Table of Contents
- Why Off-Plan Investments Offer so Much Potential
- Why Liverpool and Manchester are Good Places to Invest
- Top Manchester and Liverpool Off-Plan Development Sites
- What do the Off-Plan Developments in Liverpool and Manchester Offer You?
Why Off-Plan Investments Offer So Much Potential
What is off-plan property?
Off-plan properties are developments that have yet to be completed. This should not be confused with off-market property, which are properties that are not publicly advertised or listed.
Investing in an off-plan property differs from purchasing a completed property in that you’re buying based on architectural plans, computer-generated models, and the developer’s projections rather than a finished building. Investing in off-plan developments is often a smart investment due to the numerous benefits they offer:
- Often priced below-market value
- Flexible payment plans
- High demand from renters and buyers
When considering these factors, off-plan property developments present lucrative investment opportunities to potential suitors.
Why Liverpool And Manchester Are Good Places To Invest
As the two largest cities in the North West of England, Liverpool and Manchester are both attractive places to live in the UK. As both cities continue to grow, an increasing number of people are looking to move to Liverpool or Manchester.
With strong economies, cultural appeal and high standards of living, these cities provide a wealth of opportunities to their citizens. These factors combine to make Liverpool and Manchester prime places to invest.
Booming Economies
Manchester and Liverpool are currently in a process of regeneration, rejuvenating their cities with significant investment into previously neglected areas. This is stimulating their local economies, significantly raising the value of property in the regions.
The £5.5 billion Liverpool Waters project and Manchester’s £4 billion investment into the Victoria North regeneration are promising to greatly boost the property values across the cities. With neither city slowing down their regeneration efforts, Liverpool and Manchester continuing to fuel their respective economic developments. The Mayor of Manchester, Andy Burnham, plans to transform Manchester into a ‘world class visitor hub’ by 2025. Manchester’s aspirations as a top tourist destination aligns with the development of off-plan properties, allowing for more accommodation suited for short-term letting to be created.
With Liverpool and Manchester’s yearly growth increasing against the national average, both cities are becoming hotspots for property investment opportunities. As Liverpool and Manchester’s economies continue to grow, off-plan property is set to become more valuable. Buying the off-plan developments Manchester and Liverpool offer will see them garner appreciation due to a rise in demand because of their prime locations.
High Rental Demand
Liverpool and Manchester are highly attractive locations for young working professionals. With a wealth of job opportunities supplied in either city, young working professionals are drawn to live in the North West. Savills predicts the North West to be the most lucrative market for buy-to-let, forecasting stronger returns than London with 20.2% capital growth potential by 2028.
As Liverpool and Manchester continue to increase job opportunities for young professionals through their regeneration projects, more opportunities will arise for buying off-plan property.
Furthermore, with over 60,000 students attracted to Liverpool and 123,590 going to Manchester each year, respectively, Liverpool and Manchester ensure there is a consistent demand for student accommodation. In total, Liverpool and Manchester contain eight universities combined, including two Russell Group universities.
Low Prices And High Growth Opportunities
Investing in off-plan property in Liverpool and Manchester offers the benefit of lower purchase prices compared to completed builds.
Off-plan developments present a great opportunity to maximise profits as they only continue to appreciate as construction progresses.
With property prices continuing to rise due to strong demand, off-plan developments are becoming increasingly lucrative as investment opportunities. House prices in the North West are set to rise by 1.5% by the end of 2024, and this is only predicted to get higher in 2025. Buying at a discounted price and selling in an in-demand environment will ensure a greater ROI for investors.
Liverpool City Centre and Manchester City Centre are prime locations for renters, which makes them stand out as ideal locations for long-term lets. The high demand and short supply of housing in these locations ensures that there is a consistent rise in rent year on year. Rent in Liverpool saw an increase of 8% from 2023 and, similarly, Manchester saw a rise of 11.7%. This leads to strong rental yields, with both cities being above the national average of 5.60%. With Liverpool’s average rental yield at 7.44% and Manchester’s 6.53% (Zoopla), purchasing off-plan property with intentions of using it to provide buy-to-let accommodation would be a solid way of maximising ROI.
As the city continues its regeneration of underutilised areas, such as the Liverpool Waterfront and the Baltic Triangle, the opportunity to invest in off-plan developments greatly expands.
For further reading: Market Condition: Is 2024 A Good Time To Invest Off-Plan?
Top Manchester And Liverpool Off-Plan Development Sites
Liverpool City Centre
Liverpool’s City Centre is set to experience significant growth over the coming years. Due to high demand from students, professionals and tourists, Liverpool City Centre offers a variety of property investment opportunities. The influx of tourists ensures constant demand for short-term lets. At the same time, the city centre’s role as Liverpool’s hub makes it a perfect location for long-term lets. These tenancies provide housing for professionals and students.
The regeneration in the area is helping address the high demand from tenants, creating numerous off-plan investment opportunities. Projects like Camden House Liverpool, a purpose built student accommodation (PBSA), highlights the location’s strong rental demand and investment potential. The city centre’s proximity to the universities and amenities drives continued demand for student properties in the area.
Waterfront
The waterfront is an up-and-coming area of Liverpool and a key part of the city’s regeneration efforts. The £5.5 billion Liverpool Waters project is creating five new neighbourhoods along the iconic Liverpool waterfront.
With the Everton stadium due to open in 2025, the site is expected to attract strong tourist demand. As a result, the Waterfront is primed to become a thriving part of the city, offering many lucrative off-plan property investment opportunities.
For more insight, click here to read our guide on the Liverpool Waters regeneration project.
Vauxhall
Vauxhall is an area on the rise in Liverpool. Located next to the waterfront, Vauxhall will experience significant regeneration and economic development.
The off-plan property investment Liverpool offers to investors in this area is particularly desirable. Vauxhall provides investors with good prospects for capital appreciation and high rental yields.
Media City
Manchester’s Media City has seen significant regeneration in recent years. Now home to major media companies like the BBC and ITV, this area attracts strong demand and offers high rental yields.
Combined with the presence of its creative companies, Media City offers excellent transport links to the city. Furthermore, the close proximity to the University of Salford ensures that the location remains incredibly attractive to investors. With no shortage of demand from students and working professionals, Media City makes an attractive option for off-plan developments.
Northern Quarter
Known for its vibrant bohemian culture, the Northern Quarter has proved to be popular amongst students, professionals and tourists alike. The Northern Quarter provides a lucrative opportunity to invest in off-plan property at a below market rate in an area that promises high rental yields. With the area’s demand set to increase significantly, now would be the perfect time to invest in the Northern Quarter.
Trafford
Trafford’s combination of strong infrastructure, ongoing development, and proximity to Manchester’s economic and cultural hubs make it a prime hotspot for investment. Trafford’s popularity ensures high demand and drives strong potential for capital appreciation in the area.
Related Article: Should I Invest In Manchester Off-Plan Properties
What Do The Off-Plan Developments In Liverpool And Manchester Offer You?
Liverpool and Manchester’s surging economies, cultural appeal, and wealth of opportunities make them in-demand property locations. An investment in one of the off-plan development opportunities available in these cities could see a significant ROI for investors. With Liverpool and Manchester’s property prices forecast to rise, now is the perfect time to capitalise on this window of opportunity.
If you would like some assistance navigating the property market and exploring the off-plan property opportunities in Manchester and Liverpool, contact us today! At Advantage Investment, we will guide you through your property investment and provide you with the expert advice you need to maximise your investment!
