Manchester construction back to pre-recession levels, says Deloitte

MANCHESTER is the construction capital outside London, according to new research from Deloitte Real Estate which shows activity is back to pre-financial crisis levels.

There are 19 new developments under construction in the city centre, three times as many as last year and the same as in 2008.

Deloitte’s crane survey assesses construction activity across five of the major UK regional cities – Manchester, Birmingham, Leeds, Edinburgh and Glasgow.
 
In 2012, there were just six new projects in Manchester and there are now 21 developments underway. These consist of 961 residential units, 1,246 student beds and 342,500 sq ft of office space, of which 33% is already let.

Michele Steel, director at Deloitte Real Estate said: “It is really encouraging to see that Manchester is building again and leading the way in terms of regional development. Our closest competition in construction terms is Edinburgh where there are nine projects on site in the Scottish capital.”

The Government’s Get Britain Building fund, which sought to restart stalled schemes, is credited with triggering eight new residential developments on the edge of Salford, in the Northern Quarter and in Ancoats areas. This represents the largest residential construction volume since 2009, said Deloitte.
 
Of the office schemes on site, only one is dedicated office space – the other two are part of mixed-use developments. There are no new large speculative developments but demand for large Grade A floorplates is expected to drive construction.
 
Ms Steel added: “St Peter’s Square is going to be a key area to watch in the coming months. We expect to see movement on Fred Done’s 2 St Peter’s Square scheme – 162,000 sq ft of new Grade A space; completion of Argent’s One St Peter’s Square with occupation by KPMG by Q2 2014 and full opening of the refurbished Town Hall and Central Library to follow. With consent being given for the Metrolink Second City Crossing, the square is set to see unprecedented investment that will mark it out as the next prime Grade A city centre location.”