NEWSROOM

While the real estate sector has been a lucrative and safe haven for investors for many years, the route of those investing in real estate in England is changing. According to the research conducted by JLL, London, which was once the first choice of investors, could not enter the top five in the 2023-2027 investment value increase expectation list, leaving its place in Manchester, which ranked first.

TURKEY - The real estate sector, which started to show an upward change in price point with the pandemic all over the world, is now witnessing the change of popular locations. Real estate investors in the UK are now more in demand in Manchester than in London. So much so that, according to the research conducted by JLL, London could not even enter the top five in the 2023-2027 investment value increase expectation list, leaving its place to Manchester, which ranked first. Arda Ulaş, Managing Director of Rotas Investment, an international real estate investment management company originating in Turkey, comments on the subject and emphasizes that those who read the changing real estate investment trends correctly will benefit from this process.

“The low rate of return on investments has dethroned London”

Evaluating the changes in the real estate sector in England, Rotas Investment Managing Director Arda Ulaş said, “As those who follow the sector know very well, London was one of the first cities that come to mind when real estate investment is mentioned. But this situation began to reverse. The most important reason for the change is London's high property prices and low return on investment rates. While the rental rate of return is 4.5% in London, this rate reaches 7% in Manchester. For this reason, investors are turning their route to this city,” he said.

New destination for big brands: Manchester

Arda Ulaş said, “While Manchester ranked first with 19.3% in the 2023-2027 investment value increase expectation list, London could not enter the top 5 this time. This is the most tangible indicator of the change taking place. This situation opened the door not only for investors but also for brands to turn their way to Manchester. Rising living costs in the region have led national and international companies to relocate their headquarters from London to Manchester. Examples of these companies are HSBC, Deloitte, Ernst&Young, BBC and Amazon.com. The most important reason for this is that the employees want to live in a more livable location. For example, to own a 1+1 flat in London today, it is necessary to sacrifice 600 thousand pounds. However, it is possible to have the same type of flat in Manchester for 200 thousand pounds. Affordable prices and high rental income attract investors to Manchester.

“Manchester has also entered the radar of investors in Turkey”

Pointing out that Turkish citizens are also very interested in the UK, Rotas Investment Managing Director Arda Ulaş said: “London is a city that has always been a favourite of investors in Turkey. Turkish citizens also closely observe the interest shifting from London to Manchester in the recent period. Many Turkish investors are knocking on our door who do not want to profit from this trend change and do not want to miss this transition period. We offer the best possible service by using our experience and the knowledge of our foreign partners.”