The top 3 UK cities with impeccable investment opportunities
Written by Ángela ·
Five years following the economic recession, the global real estate market has shown mediocre signs. However, the market is evolving and simultaneously becoming more complex for the investors and professionals. In Europe, the real estate investments are coming in, from various countries making the market healthier than before.
The UK real estate market
In reference to the UK market, the economy grew more than expected in the third quarter of 2017. The GDP grew by 0.4% between July and September, an increase from 0.3% deducted in the first quarter. The economy, although falling short of a rapid growth, is slowing moving to a positive position.
With regards to the real estate market, the commercial side showed strong signs in 2017 (far from the anticipations). As far as 2018 is concerned, although the economy remains in the midst of political uncertainty, it is expected to show some growth from factors such as lending, capital sources and global economic recovery.
Looking for cities with good investment opportunities and navigating far beyond the capital city, we have found Manchester, Liverpool and Derby to be the top 3 prominent cities with impeccable investment opportunities the professioanls can look forward to in the coming years.
The reasons behind choosing the three cities:
- Manchester: world-class city which offers people a good environment to work and live. It also provides a perfect atmosphere for businesses. The transport network is efficient and competes on a global scale. The city is also home to talented human capital.
- Liverpool: one of the most exciting cities in the UK. Home to a vast young population and tech hub. The city already has a number of investments coming in.
- Derby: home to one of the largest rail companies in the world. The construction of the high-speed rail (HS2) will change the preconceived idea of the Derby in the months to come. According to BNP Paribas Real estate, in 2019, the prices in Derby are expected to rise by 23.3%. (faster than the rates in London).
More analysis on the 3 cities
For the analysis, we have used Geoblink’s Location Intelligence solution to examine the demographics of areas created within a 30km radius from the centre point of each city. The metrics chosen for the analysis are census population, disposable income and, the residential percentage.
- Census population: 3,367,710 inhabitants. Out of the total population, the number of workers is 1,528,720. Delving more into the working population, 26.87% of the workers are involved in commercial service jobs. Slightly higher than the percentage in the country (26.29%).
- Disposable income: 27,200 £ (higher than the county’s and the region’s). The unemployment rate is 7%. The rate is less than the rate of the county (7.3%) and higher than the country’s rate (6.3%).
- Number of households: 1,400,000 Households are present in an area of 2.811 km². The area is observed by a majority of owned households (47.10%). The number of households with single-person occupancy is 455,000.
Would you like to know 2017’s top 5 UK cities with high disposable income? Read our blog post to know them right now:
- Census population: 2,328,140 inhabitants. The total number of workers is 1,008,750. Breaking down the working population, 31.24 % of the workers are involved in professional services while 26.99% are working for the commercial service sector.
- Disposable income: 26,850 £ (lower than the country’s). The unemployment rate (7.7 %) is higher than the rate observed in Manchester.
- Number of households: 1,000,000 Households. The percentage of owned households is 48.42%. The households with single-person occupancy is 32.44%.
- Census population: 1,780,390 inhabitants. The total number of workers is 811,450. Out of the total population, 26.24% of the workers are involved in the commercial services while 28.35% of the workers are in the professional service sector.
- Disposable income: 27,900 £. The unemployment rate (6.5%) is less than that of Manchester and Liverpool.
- Number of households: 745,000 Households spread across an area of 2.811 km². The percentage of owned properties amounts to 49.99% and the number of households with single-person occupancy is 225,000.
- As today’s real estate professionals are concerned about finding the ideal location with indicators such as census population, disposable income and the residential percentage, an emphasis was laid on those three metrics.
- The percentages of owned households are appreciable in the selected areas of the three cities.
- An important metric to analyse is the number of households with single-person occupancy, which in the three areas is greater than the percentage of households with other occupancy types.
- An investor, prior to making an investment, analyses the area and the household types. He/she then makes a relevant correlation to identify what percentage of people occupy a 3-person household. If the number of singles in these households is more in number, the real estate professional will strike of the idea of building a 3 person household in the future years. Similarly, the demographics like the above are crucial for the real estate professionals (developers, investors, service-oriented professionals and property professionals) to analyse and derive results. By this way, they make huge returns on investment from the and can support their property promotion and portfolio.