Living by the water has long held an appeal for people in the UK. The benefits of a waterfront property are obvious; beautiful views, water sports and boating, gentle breezes and evening walks by the sea. However, as a property investor, the positives of a waterfront property far exceed pretty views. In Manchester, the beautiful River Irwell winds through the city and the famous Manchester ship canal is a well know landmark, with a fascinating history. Waterfront properties often achieve sale prices far higher than their landlocked equivalents and they can also provide great opportunities for increased rental rates and capital appreciation.
Properties by the waterfront are a great investment opportunity, as the tenant demand for a waterside residence is higher than ever. The booming Salford Quays area is a prime destination in Manchester, and major developments like MediaCityUK, the Lowry Centre and the Imperial War Museum North gained inspiration from the surrounding docks. Properties in this area have gained massively in value as the area became one of the first and largest UK urban regeneration projects. House price increases in Salford are also massively outstripping the national average. In 2017, house prices in Salford rose by 13.1%, up to £144,614 – which is more than double the national average for house price growth.
The UK is well known for its vastly differing house prices and the extra value gained by a waterfront location is of course dependent on where the property is in the country. Properties that are by the sea demand an incredible 75% more in some locations. It is not just sea views that can cause an increase in property prices. A riverside property can be worth an extra 76% and properties by a lake have been found to be worth 50% more than their comparable equivalents. Christopher Bailey, head of the Knight Frank waterfront team said,
“Waterfront is very niche, very desirable, very expensive, in a market of its own, with a status now that attracts international buyers and forms part of their portfolios”.
There are a limited amount of waterfront properties available, so there is huge potential for property price growth. Northern locations like Liverpool with its docks, Manchester with its canals and the Wirral on the coast can provide investors with far more affordable waterfront property options. Converted warehouses on the banks of the river Irwell can offer rental returns of around 6%, with tranquil waterside living appealing to young professional tenants choosing to live in Manchester.
Manchester’s waterfront has played a key role in the area’s redevelopment, with huge projects transforming the once industrial area into a modern and stylish setting. Properties in Manchester have a huge appeal, with waterside rents higher than comparable properties away from the quays and canals. Experienced property investment specialists like RW Invest provide investors with unique opportunities to purchase waterfront properties at exclusive prices. They have found that purchasing properties by the water can lead to higher rental yields, as well as capital appreciation and because of this investors are flocking to new developments there.