Top UK Real Estate Yields Revealed: Why Manchester Should Be on Every UAE Investor’s Radar

Marketing Team
May 07, 2025 • 2 min read
https://henley-capital.webflow.io/top-uk-real-estate-yields-revealed-why-manchester-should-be-on-every-uae-investors-radar

introduction

For UAE investors seeking strong returns from UK real estate, the latest data delivers exciting news: Manchester is the top-performing city for rental yields, with average returns of 6.35%. The data, compiled by Cohab, reaffirms Manchester as a go-to destination for global real estate investment.

Investment opportunities

Wales and South Coast Cities Also Shine
Beyond Manchester, Merthyr Tydfil in Wales offers 6.28%, while Portsmouth delivers 6.21%. These figures showcase how smart investors can secure exceptional returns even outside of the capital.

London Sees Fastest Growth in Yields
While overall London yields remain lower, several prime boroughs have seen rapid increases:

  • City of Westminster: up 1.36% to 4.38%
  • Kensington and Chelsea: up 1.08% to 3.88%
  • Islington, Brent, Hackney and others are also showing significant yield growth.

This signals a positive shift in London’s investment landscape, with improved rental returns and increased tenant demand in prime postcodes.

Wales Offers Undervalued High-Yield Opportunities
Welsh cities such as Newport and Torfaen have posted solid annual gains, with yields up to 5.28%—ideal for investors seeking strong returns at lower entry prices.

conclusion

Saveli Kotz, Cohab’s CEO, said: “Despite the government’s best efforts, the buy-to-let sector continues to offer an abundance of opportunity.” For UAE investors, this reinforces the UK’s reputation as a stable, profitable real estate market—ideal for portfolio diversification and passive income.