Cranes continue to dominate the Manchester skyline as residential development maintains its upward trajectory, exceeding 2008 levels for the second year running, according to Deloitte Real Estate’s Manchester Crane Survey.
The rise of residential
Twenty new residential schemes started construction on site in 2017, just short of the record-breaking 22 schemes the previous year. The annual survey, now in its 17th iteration, reports a 60 per cent 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 negotiations and rising construction costs.
Building for business
Regarded as a key barometer for the economy, The report also noted major schemes breaking ground in the office sector. Six new developments brings the total office space currently under construction to 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 per cent 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 in the same period.
Retail and leisure
In direct correlation with the amount of office and residential floorspace being delivered and designed, 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, representing a four-fold increase on 2016.
The hotel sector demonstrated a return to positive growth in room delivery following a minor slump after a year of peak delivery in 2015 (638 rooms). Three hotel completions in the City Centre include easyHotel’s budget Bradley House (115 rooms), Motel One’s second opening on Cross Street (302 rooms) and StayCity in Gateway House (182 rooms).
A regional renaissance
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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