Deloitte: Manchester residential development surpasses pre-recession levels
Results from Deloitte Real Estate’s annual crane survey have revealed residential to be the dominant development type in Manchester, with the volume of units currently under construction at the highest level since 2008. There are now 13 residential schemes ongoing in the city centre, accounting for 2,982 residential units.
Above average levels of development activity are also scheduled for 2016, and Deloitte expects this year to mark the busiest period since before the recession.
Notable projects within this figure include One Cambridge Street, Angel Gate and 1 Water Street. The number of residential units currently under construction is almost double last year’s at 2,982 units up from 1,426.
Residential developers active in and around the city centre include English Cities Fund, Renaker, Pinnacle MC Global, Lend Lease, DeTrafford Estates, and Select Property Group.
Deloitte found seven major office developments under way, delivering a combined 1m sq ft.
John Cooper, director at Deloitte Real Estate, commented: “Last year, there were 1,426 units under construction within the study area, which meant levels exceeded the 2002-2014 average and highlighted strong signs of recovery for the residential development market. This year, the question was whether this level of growth could be sustained, or if development was being artificially bolstered by the Homes & Communities Agency and Built-to-Rent funding unlocking schemes such as Nuovo, Smithfield Square, The Point and Greengate.
“In short, there’s nothing artificial about Manchester’s ability to induce residential development – it is clearly being seen as a place to invest. The number of new schemes being delivered has increased from three last year to 12 this year, which is the highest number of new starts since 2008. The anticipated delivery of units for 2016 is almost 400 units higher than the pre-recession average. This level of residential delivery is unparalleled in any other regional city.”
The report also indicated a clear growth agenda for the Northern Fringe areas of the city centre. The Greater Manchester Housing Fund, which will offer £300m of public money over the next 10 years, has helped to assist in the completion of 744 units within the study areas since its inception.