The rise of Manchester's luxury accommodation

Manchester has experienced a major economic shift over the past decade, driving an unprecedented demand for luxury housing within the city centre.

This surge in high-earning tenants, paired with a historical undersupply of premium accommodation, has triggered a boom in luxury apartment developments, firmly establishing Manchester as a premier residential destination.

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Why are people choosing Manchester?

Manchester has become an economic powerhouse over the past decade and is easily one of the UK’s biggest success stories in recent years. 

Earlier in April, Deloitte's Manchester Crane Survey reported that the city's economy exceeded £100bn for the first time (Deloitte). Growing 28% since 2015 and consistently outpacing the UK average.

The city’s GDP per capita increased by 44% in the last Census period, from £35,739 to £51,330. This is the largest increase of any major UK city. This correlates to higher incomes and more spending power.

The number of businesses in Manchester grew from 17,000 to 23,500, and the number of people employed in the city went from 350,000 to 426,000 over the same period. Highlighting the growth and productivity of the economy.

This is relevant because luxury apartments need high-earning tenants to fill them, and Manchester now has the pull due to economic growth and opportunities, resulting in a booming job market.

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What was luxury has now changed

A big reason Manchester has been able to attract high-earning tenants is that a luxury lifestyle is a fraction of the price compared to somewhere like London. You can experience world-class culture whilst experiencing a premium way of living.

However, this unprecedented growth in luxury accommodation has raised tenants' expectations. What was maybe a luxury ten years ago might not be in today's market.

High-earning tenants also have the pleasure of options, meaning developments now have to put more on the table to attract tenants. Pools, fully equipped gyms, spas, rooftop gardens and 24hr concierge services are just some of the amenities commonly found across the city.

A huge turning point for the city was the announcement of W Residences at St. Michaels, the very first regional branded residences in the UK. W Residences Manchester will feature exceptional private apartments serviced by the W Hotel. This highlights the growth of Manchester's global footprint as a premier destination.

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High demand with short supply

Manchester faces a huge supply and demand imbalance as the city centre population is growing rapidly, but construction is slowing down massively, resulting in a big disparity.

By 2030, Manchester City Council estimates the size of the population will be 630,000 (Manchester City Council, 2026), resulting in more need for housing, which also includes luxury accommodations. 

This means demand is pushing prices up on rents, but also serves as an opportunity for investors to capitalise on this gap and get in before it becomes oversaturated.

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Looking forward

Whilst there may be an imbalance, luxury developments are well underway across the city to keep up with tenant demand. 

‍Nobu Manchester was announced at the end of last year. Featuring over 450 branded residences and a 160-bedroom Nobu Hotel, the development will be the tallest tower in the UK, outside of London.

‍A recently completed development on the old Boddingtons brewery site, called Waterhouse Gardens, has made its mark. Offering residents unparalleled on-site amenities, raising the bar for tenants' lifestyle in Manchester.

If you would like to invest in Manchester and benefit from the supply shortage.

Contact us today, and one of our dedicated investment advisors will be in contact with you to discuss available opportunities in Manchester.