Newcastle or Newcastle Under-Tyne is considered a major city of both the UK and of Europe, being the North’s most populous city and the UK’s 8th most populated it is part of the United Kingdom’s core city group. Further to this, it is also part of the European network of major cities also known as Eurocities. This should put to bed any ideas that Newcastle is anything but an insignificant city. Newcastle was originally part of Northumberland until it became a county of its own joining with Tyne and Wear. The city is home to Newcastle University, which is part of the Russell group of elite Universities as well as playing host to Newcastle United a world-famous sports team.
Newcastle’s original economic power dwelled in the wool trade and coal mining, like many cities such as Liverpool it was struck by the mining strikes, although it had an impact on the area it was not as extreme as other parts of the country and is now a part of the city’s history which it has now fully recovered from. Newcastle quickly became home to one of the world’s largest ship-repair yards as the British Empire was at its strongest. The modern economy is now built around corporate headquarters, learning, digital technology, retail, tourism and cultural centres as like many other industrial cities of the past have had to adapt to the 21st century and the digital age, in total Newcastle, contributes over £13 billion towards the United Kingdom’s GVA.
Newcastle’s educational and commercial sectors are in partnership with nearby Gateshead, not only making it stronger but also part of the cultural focus for North East England. With its strong commercial and cultural performance, Newcastle’s largest shopping centre Eldon Square attracts 34 – 36 million visitors yearly since 2012 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. It is also worth noting that In a 2004 report, it was ranked as the most expensive shopping street in the UK for rent outside London, indicating the demand and possible rental yields available In the area.
With a population close to 300,000 and a 25% increase in flats and waterside apartments, it is no strange occurrence for demand to outweigh supply. The population of the area can be considered far higher than this as the Tyne and Wear area consists of several large and small cities and town, including Sunderland, which is of almost identical size and proportion to Newcastle, this totals the population at around 1,076,000 people.
With prices in southern cities such as London at an all-time high it is often difficult to start investing with insufficient funds, and so is often the case that rental yields in Northern cities are far more attractive, especially to the first time investor promising yields of 9 even 10% at a much lower entry price. These lower prices coupled with the fact that more investors can enter 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.
The plans for this area are a real deja-vu if you're familiar with Liverpool and Manchester. The area consists of 17HA and 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 vastly increasing desirability.
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.