Manchester building boom hits new heights

Aaron Morby 6 years ago
Share

Manchester is leading a regional city building boom driven by ambitious residential and commercial projects.

How Manchester's skyline could look in 2020
How Manchester's skyline could look in 2020

The latest Deloitte Crane Survey shows bumper growth for a second year in Manchester with 20 major residential projects and six major office schemes starting in 2017.

Sustained strong growth means Manchester is enjoying a 60% jump in residential and 75% hike in office projects now under construction with most major high rise schemes.

The 11,135 residential units currently being developed represents the third year of sustained growth in the city despite rising construction costs and uncertainty in the market as a result of Brexit negotiations.

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.”

He added: “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.”

The Crane Survey also reported strong growth in Birmingham and Leeds where developers’ confidence for city centre residential development remains strong.

Deloitte 2017 Crane Survey – No. projects
Residential Offices Student rooms Hotel Retail / Leisure Education Total
Manchester 20 5 0 5 1 1 32
Birmingham 13 4 3 2 1 1 24
Leeds 5 3 2 0 2 4 16
Residential units under construction Office space (sq ft) under construction
2016 2017 % change 2016 2017 % change
Manchester 6,963 11,135 60% 1,486,000 1,509,000 1.5%
Birmingham 2,331 4,077 75% 1,441,500 1,436,250 -0.4%
Leeds 619 1,586 156% 460,750 771,250 67%

Several significant Manchester schemes are likely to commence in 2018 including major residential developments as part of the St. John’s masterplan, residential blocks at Circle Square, further activity from Manchester Life Development Company in Ancoats and New Islington and work on Angel Meadow, which forms part of the  transformational Northern Gateway project.

Birmingham saw 24 major construction starts last year. This was again driven by the boom in city residential developments, up nearly a third to 13 schemes delivering 2,500 new units in 2018 alone.

Student housing schemes jumped to deliver a 53% rise in bedroom to 1,782 spaces. Birmingham’s office development has surpassed 1m sq ft for the second consecutive year, with over 1.4m sq ft currently under construction.

In Leeds residential construction across the city centre hit its highest level in a decade – 1,586 units across five development sites.

Leeds has also witnessed further growth in the higher education sector with four new starts recorded adding over 0.5msq ft into the development pipeline.

Leeds continues to deliver good volumes of new office space with three new construction starts in 2017.

Johnny Caddick, managing director at Moda and director at Caddick Group, said: “Today’s crane survey is a demonstration that the government’s ‘devolution revolution’ is paying dividends, with core cities such as Manchester, Birmingham, Leeds and Belfast seeing high levels of development across the board, but particularly in residential.

“In order to remain competitive, the regions will have to avoid the same housing pressures that London faces while also offering the same job opportunities, which as today’s figures show, they are more than capable of doing, which will aid student retention rates and in turn, long-term growth prospects.”

Latest news

M&E sector leads rise in subcontractor tender activity

Tender activity grows in first quarter but concern about project delays remain
5 hours ago

Funding deal for Salford Michigan Tower job

Vermont Construction to build first 34-storey tower for developer X1
6 hours ago

Court fight continues for specialist hit by CCJ blunder

Screeding contractor still fighting bureaucracy seven months after incorrect filing
5 hours ago

Morgan Sindall bags £60m raft of NHS projects

Mid and South Essex NHS Trust plans six projects
22 hours ago

Peri buys shoring and temporary bridge specialist Mabey Hire

Scaffolding and formwork specialist expands offer
1 day ago

Steel contractor Embrace targets £100m revenue

Growing structural steel specialist appoints COO
6 hours ago

Vinci/McAlpine go-ahead for £312m Midlands hospitals revamp

Shrewsbury and Telford Hospital NHS Trust gets full business case approval
1 day ago

Lendlease puts construction arm up for sale

After two decades of global expansion Lendlease retreats to Australia
2 days ago

Mount Anvil seals Isle of Dogs estate rebuild

Firm will build 300 new homes at East London's Tiller Road Estate
1 day ago

Northumbria Uni invites bids for £75m CHASE project

12-storey student block to be demolished for new Centre for Health and Social Equity
1 day ago

Civils firm Akela appoints former Robertson director as MD

Framework expert Robert Ogg to lead growth at Scottish contractor
1 day ago

McLaren to build new Hertfordshire primary school

Contractor to prioritise local suppliers on High Leigh Garden Village site
1 day ago

Developer picked for Stafford town centre regeneration

ION Developments will draw up detailed plans for mixed-use Eastgate scheme
1 day ago

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
3 days ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
4 days ago

Costain A1 £260m dualling job finally gets go-ahead

Ministers sat on planning inspectors report for nearly three years
2 days ago

Election delays decision on Lower Thames Crossing

Planning decision on £1.2bn Luton airport expansion also pushed back six months
2 days ago

Caddick steps-in at former Lane End housing job

Contractor to restart phase of £262m scheme hit by administration
2 days ago

Plans in for Leeds iconic Tetley building revamp

Former brewing giant's HQ to become indoor market and offices
2 days ago

BAM wins first phase of North Devon hospital revamp

New staff accommodation to kick-off hospital redevelopment
2 days ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
1 week ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
6 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
6 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
6 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
7 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
7 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
1 week ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
1 week ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
1 week ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
1 week ago

Contractor services