When you buy a property, you’re not just investing in the bricks and mortar. You’re investing in the area around it too.

A common topic when buying in growing cities, like Manchester, is regeneration. Large-scale projects that transform neighbourhoods across the city and wider region can introduce new homes, improved transport links, offices and retail spaces, changing the way an area is perceived – and, in turn, how attractive it becomes to buyers and renters.

But how exactly can regeneration affect your property?

What is Regeneration?

Regeneration generally refers to the investment and redevelopment of an existing area to improve its buildings, infrastructure, public spaces, amenities and overall appeal. It can range from a single major development to a much larger masterplan covering an entire neighbourhood.

Sometimes, investment comes from private parties, sometimes from the council or government, and often, for larger projects, it’s a combination of both.

Regeneration has been shaping towns and cities for decades. From the redevelopment of former industrial areas to major city-centre masterplans, long-term investment can fundamentally change how a neighbourhood looks, feels and functions. In Greater Manchester, for example, the transformation of Salford Quays began in the 1980s, with major milestones including The Lowry opening in 2000 and MediaCityUK in 2011.

It’s a good example of why regeneration should be viewed as a long-term process. The neighbourhood you see today can look very different from the one that existed when the first plans were drawn up.

For homeowners and property investors, understanding what is happening around your investment can be just as important as understanding the property itself.

1. Increases Demand

One of the biggest potential benefits of regeneration is increased demand.

As investment brings new homes, businesses, restaurants, green spaces and amenities into an area, it can become more attractive to people who may previously have overlooked it.

For landlords, this can mean a larger pool of prospective tenants. Professionals may be attracted by better transport links and proximity to employment hubs, while renters may value having cafés, restaurants, shops and leisure facilities on their doorstep.

The result can be a gradual shift in how an area is perceived – from an overlooked neighbourhood to a desirable place to live.

2. Property Values Rise

One of the most exciting potential benefits of regeneration is the impact it can have on property values.

As investment brings new infrastructure, amenities, employment opportunities and improved public spaces, an area can become more desirable to both buyers and renters. This increased demand can create opportunities for existing property owners to benefit from long-term capital growth.

There is evidence of this happening in London. Research from CBRE found that homes neighbouring 11 regeneration areas across London experienced higher annual price growth than their wider borough averages. On average, properties around these regeneration schemes achieved a 2.2 percentage-point annual premium in price growth.

It’s a good example of how regeneration can do more than simply add new buildings; it can fundamentally change how an area is perceived and, in turn, how much people are willing to pay to live there.

Regeneration won’t always mean prices rise; it’s still important to understand what is being delivered, where it is being delivered, and when.

3. Improves Infrastructure and Connectivity

Regeneration doesn’t centre around property. It aims to make the area easier to live in – meaning improvements to roads, public spaces, walking and cycling routes and public transport.

Transport is often one of the biggest factors, especially in Manchester – who are rather proud of their Bee Network.

A property that might currently feel slightly disconnected from a city centre could become considerably more attractive if a new transport connection or improved route reduces journey times.

For both homeowners and tenants, better connectivity can be a major factor when deciding where to live.

4. Your Tenant Profile Changes

Regeneration can also influence who wants to live in an area.

As neighbourhoods improve and new developments are introduced, the demographic of an area can gradually change.

For landlords, this could mean increased demand from young professionals, families or other groups depending on the type of regeneration taking place. Understanding this can help investors make better decisions about the type of property they buy and how they position it within the rental market.

And for homeowners, it changes who might buy your home when you decide to move on, and how much they may be willing to pay for it.

5. Regeneration Brings New Jobs

One of the main initiatives with regeneration is creating new job opportunities, whether this means construction roles working on the scheme itself, or jobs filling new office spaces once they’ve been built.

This does two things: it provides local jobs for people living there, while also bringing more people into the area who need somewhere to live. For landlords, this can create a larger pool of prospective tenants, while for homeowners, increased demand can make the area more attractive to future buyers.

For example, the upcoming Manchester Digital Campus within the Holt Town regeneration will bring approximately 8,800 government employees to the city. The campus is part of wider regeneration plans for the area and is expected to provide around 900,000 sq ft of new workspace when fully operational.

Thousands of additional workers could mean more people looking to live close to where they work, supporting demand for nearby homes from both renters and buyers.

Why Buy Before Regeneration Is Complete?

If regeneration is going to transform an area, it can be tempting to wait until the work is finished before buying. However, by that point, some of the anticipated improvements may already be reflected in property prices.

Buying earlier means securing a property while the area is still undergoing its transformation. As new homes, businesses, transport links, amenities and employment opportunities are delivered, the neighbourhood can become increasingly attractive to both buyers and renters.

Importantly, regeneration should be viewed as an additional benefit, rather than the only reason to buy. A well-located property can still provide a comfortable home for owner-occupiers or generate rental income for investors, even before the wider plans are fully delivered.

For investors, this means a property can continue to generate returns while the surrounding area develops. For homeowners, it means enjoying a place to live today, while potentially benefiting from the improvements taking place around it over the years ahead.

What should you look for?

When considering a property in an area undergoing regeneration, it’s important to look beyond the development immediately surrounding it and consider what the whole neighbourhood could look like in the years ahead.

Look at:

• New homes: How many properties are planned and what types of homes will be delivered?
• Jobs and businesses: Are new employment hubs, offices or commercial spaces being introduced?
• Transport: Are new or improved tram, rail, road, walking or cycling connections planned?
• Amenities: What new shops, restaurants, green spaces, leisure facilities or community spaces could be introduced?
• Investment: How much public and private investment is being directed into the area?
• Connectivity: What established neighbourhoods, employment hubs or city-centre destinations will the regeneration connect to?
• The bigger vision: What could the area look and feel like in five or ten years?

The exciting thing about regeneration is that you’re not just buying into an area as it is today, you’re buying into the potential of what it could become.

For homeowners, this could mean living in a neighbourhood that becomes increasingly connected and desirable. For landlords, it could mean being well positioned to benefit from growing demand as the area develops.