Manchester has been ranked as one of the top ten most influential cities in Europe, however a lack of productivity and investment is acting as a brake on further growth, according to research by Colliers International.
The city ranked tenth overall in the Cities of Influence report for 2018 and rose to fourth in the rankings for cities with populations of between two and five million people.
Manchester however trailed behind London, which was assessed as the top European city, as well as Birmingham which ranked fifth, and Edinburgh, which came in at seventh place in the latest report.
According to Colliers, Manchester’s strong talent pool, mix of top tier international universities, and economic output contributed to its attractiveness. with the report ranking cities based on their occupier attractiveness, availability of talent, and quality of life factors alongside economic output and productivity.
The analysis showed current prime central business district headline rents in Manchester had reached £35/sq ft a year with an average CBD headline rent of £27/sq ft a year, and prime CBD yield currently at 5%.
The report noted however that though many UK regional cities scored highly, they lag behind other comparable European cities when it comes to productivity. The report noted that “their [UK cities] overall economic output does not match that of their peer group in relative terms. There are some significant productivity gains to be had, if the ongoing investment into ‘UK devolution’ continues to gain ground.”
Colliers also states that UK regional cities such as Manchester appear to be “under-invested”.
Andrew McFarlane, director and head of the North West for Colliers International, said: “Manchester continues to boast one of the highest student populations in Europe with two of the UK’s largest universities and one of the largest medical campuses in western Europe.
“The city is increasingly capable of retaining this future talent as a major force in the Northern Powerhouse, which is helping to drive greater levels of investment into the city.”