Manchester named a global city to watch
September 24, 2026
UK Property Market / Manchester
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Manchester has been named one of the world’s ‘Cities to Watch’ by Oxford Economics, highlighting the city’s growth and potential for further expansion over the coming years.
The recognition comes as part of the 2026 Global Cities Index, which assesses 1,000 cities worldwide across five categories: economics, human capital, quality of life, environment and governance.
Manchester ranked 90th globally, making it the highest-ranked UK regional city, and was the only UK city included in Oxford Economics’ new Cities to Watch selection. It was one of just five European cities to make the list, alongside Warsaw, Eindhoven, Toulouse and Tallinn.
A City with Economic Momentum
The report points to Manchester’s economic performance as one of the key reasons behind its inclusion.
Since 2010, Manchester has outpaced every other UK city for both GDP and productivity growth. Oxford Economics also expects the city to record the fifth-largest increase in jobs of any European city over the next 25 years.
Professional and business services are expected to play an important role in that growth, alongside Manchester’s expanding knowledge-based economy.
The city’s universities are another important part of the picture. Manchester has a large student population and continues to attract graduates and younger professionals, helping to build a growing pool of skilled workers.
That combination of employment opportunities, talent and comparatively lower costs than many larger European cities is helping Manchester attract both people and investment.
Thriving Cultural Scene
Manchester is well known for it’s culture, and it’s being invested in too. Sports, football specifically, and Manchester United and Manchester City even more specifically, have both brought in huge attraction to the city. The music scene is also continuing to grow, with the opening of Co-Op LIVE, and hosting the BRIT Awards.
The creative industries in the city are hard to ignore, and they’re a huge driving factor behind why Manchester continues to grow, be recognised, and ultimately end up named in lists like this one.
Transport Network & Regeneration
Another point highlighted in the report is Manchester’s significant growth in transport services – the strongest of any UK city outside London.
That growth reflects the city’s wider investment in connectivity. Over the past two decades, Manchester’s transport network has continued to expand, with the Bee Network now bringing together buses, trams, walking and cycling, with local rail being integrated from December 2026.
It’s not just becoming bigger, but more connected and reliable too. Since the introduction of the Bee Network, punctuality across the first areas to transition has risen from around 69% to consistently above 80%, while more than 98% of scheduled kilometres have been operated across much of the network.
A major driver behind this investment is Manchester’s focus on regeneration. Across Greater Manchester, funding is being directed towards transforming brownfield land into new, liveable neighbourhoods, with projects such as Holt Town, Mayfield and CyanLines creating new homes, green space, employment opportunities and improved connections.
As these areas continue to develop, better transport links are helping connect new neighbourhoods with the city centre and wider employment hubs – eventually resulting in the continued growth of Manchester, as highlighted in the Oxford Economic report.
Winning Qualities
The report also provides a useful snapshot of Manchester’s wider economic position. The city ranks 90th globally, with a particularly strong 74th position for economics.
In 2025, Manchester recorded a GDP of US$194 billion, with GDP per person of US$53,700 and a population of 3.6 million.
Oxford Economics identifies high educational attainment, economic stability and the size of the local economy among Manchester’s key strengths. These factors are helping to support the city’s growing reputation as a destination for businesses, talent and investment.
There are challenges too, with housing costs, crime and environmental factors highlighted as areas where Manchester performs less strongly. However, the report ultimately places Manchester within its “Sustainable City” archetype, reflecting the balance between its economic performance, quality of life and longer-term development.
This broader picture helps put Manchester’s position as a City to Watch into context. Its growth is being driven not by one factor, but by a combination of economic strength, a large and highly educated population, investment and ongoing regeneration.
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FAQs —
Manchester But-to-Let Hotspot
Yes. Manchester has topped Aldermore’s Buy to Let City Tracker for the second consecutive year, with rents rising 7.3% year on year, house price growth of 6.3% — the highest of any city in the Tracker — and a vacancy rate of just 0.8%.
No. Manchester’s house prices have grown at 6.3% annually, the highest of any city in the Aldermore Tracker, and well above the UK average of 1.3%. This sustained growth, combined with constrained supply, means prices have continued to rise rather than fall.
The outlook remains positive. Manchester’s combination of rising rents, strong house price growth, a 0.8% vacancy rate, and an active £17 billion regeneration pipeline near Piccadilly Station all point to continued demand and performance well into the coming years.
Ancoats and the Northern Quarter offer yields of 5.5% to 6.5%, with strong capital growth potential and high demand from professional tenants. The city centre (M1) offers a similar yield range with a broad tenant base and consistently low void periods
Average rent per room rose 7.3% year on year, from £518 in 2024 to £556 in 2025, while average short-term yields across leading UK buy-to-let cities climbed from 6.9% to 7.4%.
Not for most landlords. Manchester’s rental income growth of 7.3% year on year and the city’s 6.3% house price growth provide a meaningful offset to financing cost pressure. Landlords with quality stock in high-demand areas are still generating strong returns.
Modern one and two-bedroom apartments work best across Manchester’s key investment areas — Ancoats, the Northern Quarter, and the city centre — where professional tenants are the primary demographic and demand for quality, well-managed stock remains consistently strong
Yes. Ancoats offers yields of 5.5% to 6.5%, backed by a £175 million investment programme and growing demand from high-earning professional tenants, making it one of the strongest areas for capital growth in the city.
The data suggests staying is the stronger long-term position. Supply constraints, durable demand drivers, and rising rents all point to continued performance. Landlords exiting now risk selling into a market that rewards patient ownership.
Orlando Reid Invest offers full lettings and property management services, as well as access to new investment opportunities across Manchester. Whether you are reviewing your existing portfolio or looking for your next acquisition, the team can advise on strategy, yields, and management.
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