Manchester retail offers some of the best opportunities for property investors in the country, according to DTZ.
Research for the DTZ Fair Value Index TM suggests that the number of "hot" markets is expected to fall from 15, as of Q3 2013, to just one, Manchester retail, by Q3 2014.
Conversely, the number of "cold" markets is set to rise from one to four, London West End retail, London Mid Town and City offices, and Heathrow industrial, over the same period.
The DTZ Fair Value Index TM results for Q3 2013 suggests that relative attractiveness of current pricing in the UK property markets declined slightly in the third quarter of 2013 to 85, from 90 the previous quarter. Nevertheless, the UK remains more attractive than Europe as a whole with 15 of the 20 markets covered being rated as "hot".
Commenting on the outlook for Manchester, Simon Lowe, associate director at DTZ, said: "Investor appetite remains strong for all sectors in Manchester and the North West, but Manchester retail remains the most underpriced major centre in the UK.
"Supply side shocks such as The Arndale extension and The Avenue, Spinningfields have now settled and we have significant rental growth forecasts over the next few years as the UK economic recovery continues. Investors have always been keen to hold prime retail stock in Manchester but some are beginning to test the market, providing opportunities for new and other existing investors to acquire much sought after assets."