The so called Northern Powerhouse cities of Liverpool and Manchester have joined the Bangkok, Lisbon and Berlin at the top of a list of global property investment hotspots, according to a new ranking report.
Liverpool continues to take the top spot. With rapid growth taking place, the report says that house prices are on the up, with an 8.6% increase recorded from October 2016 to October 2017 and rents are forecast to increase 16.5% from 2018 to 2022.
Healthy rental yields of 5.6% gross were recorded at the end of 2017 too, driven by a large working age population and a 51% graduate retention rate from the city’s 105,000 students.
With significant investment in Liverpool the city has experienced faster economic growth than the rest of the UK and is also one of the UK’s best performing property investment locations with average rental yields of 6.2%, the report says. Since 2015, house prices have increased 14%. Rents are also on the up, with predictions of 17.6% growth from 2018 to 2021.
The report says that Liverpool is the largest economy in the UK outside London which is proving very appealing for international investors. Rental growth of 18.8% is forecast between 2018 and 2021, which is being driven by a student population of 65,000 and key growth industries bringing 6% annual job growth in the private sector.
There is also a significant supply shortfall with 90,000 units to be delivered by 2021, but only 60,000 units in the development pipeline. ‘With willing renters and buyers Liverpool is well-placed to grow and showing all signs of a strong future,’ the report points out.