Manchester is the leading UK tech destination

May 21, 2025

The UK’s tech sector is one of our major national strengths. It’s a £1 trillion economy all by itself according to HSBC Innovation Banking UK and Dealroom, and it’s grown in size by more than 20% since 2023.

Cities at the forefront of the UK’s tech revolution are creating a huge number of the most desirable jobs – and attracting young professionals and graduates to fill them.

Manchester is at the front of these cities, and it’s fast becoming one of the leading tech destinations not just in Europe, but in the world.

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How big is Manchester’s tech sector?

Manchester is one of the UK’s top digital cities and is home to an estimated 10,000 tech businesses. They span from single-person start-ups to massive multinational companies, and together they help make Manchester an innovative, rewarding and exciting place to live.

Research from Barclays Eagle Labs shows that Manchester benefits economically from its tech businesses more than any other UK city outside London. More than £30 billion is generated annually by the sector, demonstrating that Manchester’s tech businesses deliver high-value and high-quality employment.

The city also recently topped the SAS AI Cities Index 2025 for the second consecutive year, and neighbouring city Salford rose to fifth. The ranking is judged on job opportunities, innovation funding secured, education opportunities, business activity in the AI sector, and the strength of the two cities confirms the region as a significant hub in this emerging market.

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The most popular city to start a tech business

That strength is also setting Manchester up for the future. A study from Capital Enterprise shows that decision makers at UK tech firms consider the city to be the UK’s top destination for starting a new tech business.

28% of leaders chose Manchester as their preferred location if they were to start another company in the sector. Key factors included the quality and availability of local talent, the level of connectivity within the city and to other UK cities, and the business support on offer from local authorities.

Manchester scores extremely highly in all those areas – the same areas that make property for sale in Manchester such an attractive option for investors.

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New tech developments in Manchester will draw even more businesses to the city

The new wave of tech businesses in the city will have world-class developments to call home. The £1.7bn Sister Innovation district is in development now and promises to be a “global hub for science and technology, and a community for entrepreneurs, professionals, families, scientists and creatives.”

It’s located next to Manchester Piccadilly Station and only a short walk from both universities in the city centre. That makes it the perfect place for young professionals, graduates and businesses. In other words, it’s sure to draw people from around the world to Manchester.

Also opening soon is Campfield, a 130,000 sqft mega campus designed to foster collaboration and innovation, providing world-class facilities for businesses in the creative and tech sectors.

It aims to be a place where Manchester’s tech and creative ecosystems can combine to multiply their impact and further confirm the city as a place where the best tech talent and businesses in the world make their home.

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Will Manchester’s tech economy growth increase house prices and rents?

Manchester’s tech sector strength should be a key factor for investors. The tech businesses that choose Manchester bring the highest-paying, most desirable jobs in the world with them. That means they will attract young professionals willing to move for the best work, and also make Manchester a prime destination for students and graduates from around the world.

Those are the two groups of people who demand luxury Manchester city centre apartments and are willing to pay for them.

The Office for National Statistics shows that rents in Manchester have increased by 9.5% and house prices have gone up by 6.9% in the last year. Those are far higher average rises than the country as a whole and show how a booming economy directly leads to higher returns for investors.

In the future, Manchester’s economy will keep growing faster than the national average, in large part thanks to its status as a premier destination for technology businesses and the people who want to work for them.

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How to invest in Manchester property?

That makes 2025 the perfect time to invest in Manchester property. In particular, city centre developments like Obsidian, Waterhouse Gardens and Vivere, offering easy access to the city centre and the high level of amenity and service that modern renters demand – and pay for.

Which investment opportunity in Manchester suits you will depend on your strategy, but the best way to proceed is to speak to our team of experts, who can help you design a bespoke plan to achieve your financial goals.

Want to learn more about investing in Manchester? Contact us today to start your investment journey.

Manchester is the leading UK tech destination

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Manchester is the leading UK tech destination