A major new report released by IT giant IBM has revealed that, thanks to FinTech, cyber security and advanced materials, Manchester is ranked in the global top 10 cities for foreign direct investment.
In terms of the parameters of the report, IBM were looking at what factors are driving foreign direct investment and impacting economic growth around the world.
London came out on top with regards to number of projects that attracted foreign direct investment, however, Manchester and Liverpool made their way into the top 10 globally thanks mainly to their emergence as a popular destination for tech start-ups and innovative manufacturing projects.
As a metropolitan area, Manchester and Liverpool attracted 68 projects which created 7,000 jobs between them. The report also notes that these were high income jobs which have boosted the economy significantly.
This ties into the recent trend of Manchester and the wider North West attracting some of the top talent from across Europe with inward migration. Property is currently going up in record numbers in order to accommodate the population boom and incoming talent, with off-plan property in particular seeing a surge in popularity and demand.
Quoted in the Manchester Evening News, Tim Newns, chief executive of Manchester’s inward investment agency MIDAS, said: “This report once again confirms Manchester as a globally significant business destination and, together with Liverpool, illustrates the potential of the Northern Powerhouse.”
Manchester has also seen a number of infrastructure projects coming close to completion recently, in particular the new motorway relief road through Stockport, Hazel Grove and East Cheshire, which is estimated to contribute up to £2.2bn into the economy as it eases congestion and makes access to the airport much easier.
A recent report from the Centre for Economics and Business Research states that the Greater Manchester economy grew by 7.5% in the years since 2014, compared to just 6.9% in London, while the Manchester city region has experienced growth of 9.1%. This growth is not predicted to slow, with forecasts showing that the Manchester economy is expected to expand by 14.8% over the next ten years.
The UK overall ranked 5th in the table for foreign direct investment by country, moving up from 6th the previous year and predicted to move upwards in the coming years. Despite coming 5th overall the UK has four cities in the top 20, equalled only by Germany.
The future is looking bright for the Manchester economy with there being no reliable predictions that the growth experienced by the city and larger region will slow down any time soon. The only question is whether property demand will be met by supply as buy to let property investors continue to enjoy the profitable housing market, builders may struggle to provide them with the supply they require.
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