Residential towers dominating Manchester new builds says crane survey

Construction activity remained resilient in Manchester and Salford in 2024, with 58 projects on-site, according to Deloitte’s annual Manchester Crane Survey.
But in a warning of a possible slowdown, 2024 was the third year in a row for decreased new construction starts in Manchester, with 20 new projects brought to site, compared to 21 in 2023. This was below the ten-year average of 28 and the lowest number since 2014.
These were dominated by residential towers and student apartments.
Despite inflationary pressures, the residential market remained strong in 2024. Across Manchester and Salford, 4,448 homes completed construction in 2024, with an additional 11 new residential schemes starting on-site, which are expected to add an additional 2,410 homes to market. With a total of 10,788 homes under construction, the projected completions are on track to meet Greater Manchester’s average annual target for residential delivery in Manchester for the next two years.
But while no student schemes completed construction in 2024 – the pipeline remains strong with 2,687 bedspaces under construction and further activity expected in the coming years in light of recent planning permissions.
Cooper, said: “Despite economic headwinds and political uncertainty shaping much of 2024, the residential market in Manchester continues to deliver strong results.
“The city’s commitment to addressing housing needs and the projected completions of approximately 9,000 new homes over the next two years means Manchester is on track to exceed the average annual demand for homes, identified in Greater Manchester policy.”
“With Manchester’s leading higher education institutions also bringing in thousands of students every year, the city’s student residential sector is continuing to deliver more bedspaces, with a number of new permissions granted to ensure growing student demands can be met.”
Overall total completions also increased in 2024, with 27 developments delivered, a significant increase on 2023. The residential sector continued to dominate construction activity across the city region.
In the office sector, activity was dominated by refurbishments and extensions, as opposed to new build offices. Despite robust occupier demand for large-scale, modern, adaptable and sustainable offices, headline rents have been unable to keep pace with construction inflation, pushing refurbishment activity.
In 2024, 1.07m sq. ft. of office space was delivered, reaching its highest level since 2020. Of the six schemes commencing construction last year, five were either refurbishments or extensions of existing office space. However, these new schemes are proving smaller in scale, set to only add c.400,000 sq. ft. of new floorspace when complete. This is comparatively lower to 2022, when five new starts added 1.1m sq. ft. of new floorspace.
Deloitte’s Cooper added: “The shift to hybrid working patterns has created an opportunity to deliver high-quality office space that prioritises collaboration and sustainability. Manchester has certainly embraced this trend whilst seeing a shift towards refurbished offices which represents 68% of the total floorspace under construction in 2024. The pipeline of activity is strong, ensuring Manchester remains at the forefront of hybrid, sustainable office spaces that cater to changing working dynamics.”
Construction activity in the education sector was more subdued with no new schemes starting on-site in 2024. However, the delivery of 306,000 sq. ft. of new floorspace at Manchester Metropolitan University’s Science and Engineering Building added a further boost to the education offer in the Oxford Road Corridor.
Professor Duncan Ivison, President & Vice-Chancellor at The University of Manchester, said: “We have invested in our campus to deliver world-class facilities and cutting-edge technologies, which enable us to attract top talent to the city region and empower them to push the boundaries of discovery and innovation. But there is more to do.”
Manchester’s city centre has seen 744,378 sq. ft. of new retail and leisure floorspace being delivered since 2019. A further 213,000 sq. ft. is set to be delivered in the next three years, predominantly integrating into mixed use developments.
In 2024, only 258 hotel beds were delivered to market across two schemes, with a further 1,181 rooms set to complete construction in the next three years.
Leader of Manchester City Council Bev Craig responded to the survey by saying: “The survey is a useful litmus test that makes sure that our city continues to thrive, and despite a challenging economic backdrop for much of the country, we are building record numbers of homes – including more affordable housing than at any other point in the last decade – we saw more than 1m sq ft of much-needed office space delivered to market last year alone, with more than 1.5m sq ft under construction, alongside a range of commercial space opportunities.
“Manchester is leading the way in construction, but this isn’t just about buildings. This is about driving investor confidence to create a long-term supply of development. This is about creating high quality employment opportunities that help our residents to prosper. And it’s about creating a global city that is attractive, welcoming and future proof.
“The pandemic presented a range of economic challenges for the UK’s towns and cities, and building has broadly slowed. Thankfully Manchester is bucking that trend and we are continuing to attract major business, investment and residential opportunities that will help meet demand and support our city’s ongoing growth.”