With foreign investors jumping at the fall in the pound, this has pushed the Northern property investment market to new heights.
Newcastle’s property investment market has had a steady growth than say Manchester, making it a more affordable city with more room for potential growth to invest in. Investing in Newcastle today is comparable to investing in Manchester or Liverpool 10 years ago, so are you ready to get ahead of the property investment trend?
Newcastle (or Newcastle Under-Tyne) is a major city of both the UK and of Europe. It is the North’s most populous city and the UK’s 8th most populated it is part of the UK’s core city group. It is also part of the Eurocities, European network of major cities. The city is home to Newcastle University, which is part of the Russell Group of elite universities. It is also home to Newcastle United, the world-famous sports team.
Newcastle’s modern economy is now built around corporate headquarters, learning, digital technology, retail, tourism and cultural centres. In total, Newcastle contributes over £13 billion towards the United Kingdom’s GVA. Newcastle’s largest shopping centre Eldon Square attracts over 36 million visitors yearly, making it the 5th busiest shopping centre in the UK. Like many Northern cities, Newcastle is seeing huge redevelopments and regenerations over the last decade and continues to do so.
When it comes to investment, we know that serious investors are interested in the forecasts, figures and finding the best opportunities in Liverpool For many, it’s not a question of “should I invest?” but “how do I invest?” We aim to help you with this decision, so if you have any questions, please do get in touch and our senior portfolio managers will be happy to help.
Why Invest In Newcastle?
With a rapidly growing population and a 25% increase in flats and waterside apartments, demand dramatically outweighs supply in Newcastle. With prices in southern cities such as London at an all-time high, it is often difficult to start investing with insufficient funds. This makes rental yields in Northern cities such as Newcastle far more attractive. It is a particularly lucrative opportunity for first time investors as property investments can promise yields of 9 even 10% at a much lower entry price. These lower prices coupled with more investors entering the market at these lower prices means that Northern cities are seeing a faster rate of investment than places such as London and surrounding areas.
Student Investment Property in Newcastle
Newcastle has a thriving student population. Over the last 10 years, it has seen a 30% increase in international students and has over 10,000 purpose built beds for students.
This makes the city the 2nd highest for the number of purpose-built accommodation (PBSA). With a total student population at over 53,000, it is close to Liverpool and Manchester in its student capacity. The current demand ratio is 5 students chasing every purpose-built bed, meaning PBSA stock carries 70% rental premiums. Newcastle’s student population has seen a rise of 46% over just a 6 year period.
Although catching up to cities such as Manchester, experienced investors understand it is quite often the case to try and invest ahead of the trend. Newcastle and nearby Sunderland are definite front runners for best places to invest within the next couple of years. In this same 6 year period where the student populous grew around 46%, the available bed spaces only grew by 19% leaving a huge gap in the market. Today Newcastle has around 70%
Invest in Newcastle’s Economy
Oxford Economics predicts that over 9500 more jobs will be created in Newcastle over the next decade.
This includes a replacement demand for those leaving labour intensive jobs, resulting in stronger business markets in its sciences and commercial sectors. It has seen the highest demand for office space since the recession, indicating its recovery.
There is no doubt that the best investors market in Newcastle at this time is in its student sector. This has been proven to have a knock-on effect on the entire economy. Using Liverpool as a case study, we can see the effect that both regeneration and a boom in student population can have on a city. After its huge Investments, Liverpool won the Cultural Capital of Europe as well as seeing record figures in all its markets, including tourism, commercial, residential and student property.
Newcastle is where Liverpool was 10 years ago and at the start of its own renaissance, this makes it one of our top tips for best places to invest over the next 10 years. Our own expert consultants are excited about delivering Newcastle to all our clients’ impressive portfolios.
Investing in Property in Newcastle with Sterling Woodrow
Whether you are a first-time investor looking to understand your options and make the first steps towards building your portfolio, or an experienced investor looking for someone to effectively manage your investment, our team goes the extra mile to deliver exceptional service and results.
Newcastle Property Investment FAQs
It depends on the kind of investment you are looking to make. For buy-to-let opportunities, we’d recommend looking to East Pilgrim Street. The area is situated directly next to Newcastle’s City Centre and includes a mixture of listed, underused and derelict buildings. Like many modern projects, it plans to create a modern, open and pedestrian feel to the city.
The scheme is designed to help accommodate the predicted population growth, partially brought about by the promise of other northern cities’ success and the fact that the exact same trends can be seen in Newcastle, starting with the Student Populous.
Learn more about our investment opportunities in Newcastle and the surrounding areas including hotel rooms, student accommodation, and care homes.