Mel Wilson and Simon Bedford
Residential development in Manchester has exceeded 2007 levels for the second year running, according to Deloitte Real Estate’s Manchester Crane Survey.
Twenty new residential schemes started construction in 2017, just two less than the record-breaking 22 schemes the previous year. The annual survey, now in its 17th iteration, reports a 60% increase in residential units under construction from the previous year.
The 11,135 units currently being developed represents the third year of sustained growth for the region, despite increasing uncertainty in the market as a result of Brexit and rising construction costs.
Simon Bedford, partner at Deloitte Real Estate, said: “Manchester has firmly established itself as one of Europe’s fastest growing cities. Backed by significant investor confidence, a strong business community, and an influx of new talent, the demand for property, particularly in the residential market, has never been more evident.”
The report also noted major schemes breaking ground in the office sector. Six new developments brings the total office space currently under construction to over 1.5 million sq ft. This includes Circle Square (526,000 sq ft across two buildings) and Landmark (178,000 sq ft) both having begun construction in 2017.
The 973,780 sq ft of office space delivered in 2017 represents an increase of 75% on 2016 figures. Strong delivery is underpinned by increasing demand for office space, with take up across the city centre at 911,677 sq ft to Q3.
Bedford continued: “New office construction is regarded as a key barometer for the economy, the real estate industry, and ultimately, Manchester’s benchmark in its mission to achieve status as a global city.”
Retail and leisure has also seen a significant boost in activity in 2017. To meet demand generated by new residents and employees, 62,557 sq ft of retail and leisure space was delivered in the last 12 months, and the level under construction is double 2016 figures.
Bedford concludes: “The results from this latest crane survey are hugely impressive for Manchester. The city has maintained a strong degree of momentum on the results from 2016, and the level of build in the city centre should be seen as a benchmark for cities looking to grow and develop.
“With the additional investment we are seeing from international markets such as South East Asia, Middle East, and the US, Manchester’s real estate market will continue to develop at scale, cementing the city’s position as a global destination for business, leisure, and education.”
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