Crane Survey in Real Estate
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London’s new look density policy is dividing opinion
By Richard Katz, Deloitte Real Estate
The ‘Draft London Plan Examination in Public’ (EiP) is now in full swing, having already examined key policy topics such as good growth, strategic regeneration, housing supply and housing strategy. The hearing on 05 March 2019 saw the issue of density take centre stage, with draft Policy D6 – Optimising Housing Potential under the spotlight.
By Colin Mounstephen, Deloitte NI
The third annual Belfast Crane Survey produced by Deloitte Real Estate highlights another healthy year for our city, with 35 schemes either completed or under construction through 2018. This compares with 30 schemes under construction or completed in the 2017 survey.
Crane Surveys 2018
Backed by significant investor confidence, strong business communities and an influx of new talent, the latest Regional Crane Surveys show an unparalleled scale and volume of development.
The latest Deloitte Crane Surveys for Birmingham, Manchester and Leeds clearly highlight that development has returned, not least of all in the office and residential sectors. Developer confidence and momentum had been building over recent years in the northern cities, and our results show that Birmingham has now caught up. Together, the three cities have recorded a total of 46 new development starts, up 27% on the long-term annual average. Spurred on by low-levels of supply and increasing demand, 2015 was the year where construction activity in these regional cities turned a corner.
Earlier in the year we released the third report in our London Business Footprint series in which we looked at the growth of the serviced office sector within London. Since then it feels like we are seeing weekly announcements of serviced office operators and co-working space specialists taking more office space, and not just in second-hand buildings. This is an occupier type that is now targeting new developments.
I recently sat down to read Richard Horton’s (Deloitte, Head of Finance Research) latest piece of research, entitled ‘The robots are coming’. I was immediately disappointed to learn that robots are not the walking, talking auto-bots we know and love from 1980s sci-fi films, but rather invisible bits of software. Having recovered from that news, I soon realised that Richard’s report on the growing automation of boring back-office chores actually has some pretty significant implications for the way firms might use office space.
This summer’s London Crane Survey points to a rebounding development market across the capital. Perhaps unsurprisingly, driven by a combination of planning policy and the expectations of investors and occupiers, BREEAM now stands as a de facto badge of credibility for new product in core markets. Our research shows that 83% of developments in the survey are seeking to achieve a BREEAM rating. Half of those are seeking an ‘Excellent’ rating, with three schemes targeting ‘Outstanding’; the highest rating available.
We have recently released our latest London Office Crane Survey report. This flagship piece of research measures the volume and impact of office development across central London over the next five years and is widely used as a barometer of developers’ sentiment and future office supply.
On reading this summer’s Deloitte Real Estate Crane Survey, I began to wonder whether the planning system is doing its bit to maintain the supply of new offices?