The lack of quality residential accommodation in central Manchester could limit the city’s growth, Colliers International has claimed.
A research paper entitled Cityscape produced by the firm looking into the occupational and development markets in Manchester estimates that around 4,000 residential units will be delivered across 12 developments in the central business district, or inner ring road of Manchester between 2018 and 2022.
But Colliers said that in that time span, almost 11,000 jobs will be created in the CBD by new and existing employers. With key sectors such as tech and healthcare, along with professional services, looking to recruit heavily among millennials and ‘Generation Z,’ city centre accommodation will be highly sought. Both the quality and location of units currently being provided are questioned by Colliers.
Michael Hawkins, national offices director at Colliers in Manchester, co-ordinated the research and said it showed the importance of focusing not only on ‘superficial’ headline supply figures but on evaluation and definition of the quality of the product being supplied.
Hawkins said: “We established that the number of units being delivered within the CBD between 2018 and 2022 was just over 4,000 but more importantly, that there were almost 11,000 jobs being generated in that area over the same timeline.
“Our analysis of the corporate profile and nature of the businesses creating these jobs shows that a high proportion of these new employees will be from the Millennial and Generation Z employment base.
“There are a number of residential schemes being brought forward but because of their micro location, environment, orientation, internal configuration and build quality and interior finish, they will simply not prove to attract lettings and will always struggle to perform.
“Manchester is therefore under-supplied in respect of good quality and well-located residential schemes.”
Hawkins qualified his assertion by adding that the quality of the educated workforce in Manchester continues to improve, with the city still attracting a wide range of businesses seeking to create jobs for young professionals that require somewhere to live.
“The Manchester economy is showing great resilience and development of different asset classes is being brought forward in a responsible fashion,” Hawkins concluded.