Manchester and Bristol are set to be the UK’s highest growth cities across multiple real estate sectors over the next decade, according to new research from CBRE.
The firm’s new ‘Which City? Which Sector?’ report, which looks at the prospects for 12 real estate sectors across the 50 largest regional towns and cities in the UK outside of London over the next 10 years, ranked Manchester and Bristol in the top three for office, retail, urban logistics and multifamily.
CBRE analysed GDP, employment and income growth, demographic trends, local university provision and property market data, including supply pipeline and housing affordability, to create the ranking.
Manchester scored highly thanks to its diverse industry base, large student population and its thriving retail, tourism and hospitality sectors. It was ranked in the top five for growth in the office, retail, urban logistics, student accommodation, multi-family housing, single family housing, affordable housing, senior living, leisure and food and beverage, self-storage and life sciences sectors.
Bristol, which is expecting population growth of 3.6%, employment growth of 5.6% and a 13% increase in office employment over the next decade, ranked in the top five for potential growth in office, retail, urban logistics, student accommodation, multi-family housing, single family housing, affordable housing, senior living, leisure and food and beverage and self-storage.
Manchester, Birmingham, Bristol, Edinburgh, and Glasgow were tipped as the leading growth markets for the office sector; in retail, Birmingham, Bristol and Manchester lead the pack; with Manchester, Bristol, Sheffield, Reading and Birmingham the highest ranked cities respectively for the projected growth of urban logistics.
Jennet Siebrits, UK head of research at CBRE, said: “The way towns and cities grow and evolve is very much reflective of their local geographies, natural resources, and cultural history. As a result, no two cities in the UK are the same, and consequently, different real estate sectors thrive in different locations. Real estate investors and occupiers need to be cognisant of these differences to help inform their strategies.”
Ciaran Bird, divisional president, advisory services, and CEO UK and Ireland, added: “Manchester and Bristol have once again shown their strength as top cities for investment and growth, which is unsurprising given their strong demographic and economic fundamentals, and projected growth over the next decade. As investors look at what life outside of London offers, technology transformation advances at pace and the world of work continues its post-Covid evolution, investors would be wise to reevaluate which cities offer the best potential and which sectors offer the greatest opportunities to diversify their portfolio.”
