At the start of 2018, Liverpool is one of the country’s most popular cities thanks to its cultural, historical and architectural legacy. It’s also attracting investors from around the globe thanks to the dynamism of its property and business sectors.
We don’t think that the increase in investment in Liverpool property is likely to stop any time soon. Here are five reasons why we think it will continue through 2018 and beyond.
Continuous And Extensive Regeneration
Visitors to Liverpool will see the horizon scattered with cranes as the city continues to pump money into new developments. These range from commercial and residential buildings to new tourist attractions. One of the most interesting projects currently on the go is the Ten Streets regeneration. This is part of a 20-year strategic overhaul of the city, focusing on constructing a new ‘creative district’ aimed at bringing long term economic benefits to Liverpool.
Endless Tourism Potential
The tourist sector in Liverpool is worth more than £3.8 billion. It’s one of the most visited cities in the UK and welcomes around 54 million people every year. The knock-on effect of this is that the industry supports about 50,000 jobs in Liverpool.
Popular attractions for tourists are varied, ranging from the Cavern Club for Beatles fans to the UNESCO World Heritage waterfront area. All these must-see attractions are backed up by more than a dozen Michelin-starred restaurants, and many more nightclubs, bars and eating places to try out.
Undersupply Of Housing
Between April 2009 and March 2016, homes were built in Liverpool at an average rate of 713 every year. The Home Builders Federation estimates that Liverpool actually needs 3,000 homes every single year to keep up with the demand. This major mismatch between supply and demand has created an attractive investment opportunity.
The demand for homes in the city is constantly rising. The population of Liverpool rose by more than 120,000 people between 2001 and 2011 according to the Census, which represents a growth of 5.5% in just ten years. This pushed up housing prices and rents in the city, and in the outer lying regions.
In 2016, rents increased by 4.4% across the North West and house prices have risen by 22.7% since 2012. The price of apartments and flats has risen even faster at more than 25%.
Liverpool consistently attracts a wide range of young professionals, drawn to the city for its economic potential. In the ten years between 2001 and 2011, those aged 22-29 living in the city centre increased fourfold. This has created an enthusiastic, dynamic, forward thinking workforce, ideally positioned to provide the city with a bright economic future.
Businesses are working hard to properly harness this young population, with business incubators set up in the city by the likes of Launch 22 and Santander. Liverpool is firmly ahead of many other UK cities when it comes to future-proofing its economic success.
Liverpool isn’t just a promising location for UK businesses and investors – it’s also one of the most appealing cities in the UK for multinational companies. Its mix of business sectors and income streams has allowed the city to build up strong economic credentials.
fDi Magazine, owned by the Financial Times, named Liverpool as joint second in the top ten mid-sized European cities of the future 2016/2017, particularly noting its business friendliness and connectivity.