Construction is a high cost, high risk, long-term activity and is routinely looked to as a marker for the economic health of a city or region. Our Real Estate Regional Crane Surveys highlight this link between development and prosperity, examining the external influences and key market drivers of city centre construction.
Manchester and Leeds each have their individual story of transformation and investment . Developer confidence and momentum has been building in the regional cities, pushing schemes upwards and outwards. Spurred on by this upturn in sentiment, how has this translated across these Northern cities and their submarkets?
The rise of city centre living
Manchester is flying the flag for city-living with a record 22 residential projects breaking ground on site last year. The city is scheduled to deliver nearly 7,000 units to the market. The Northern Powerhouse's skyline continues to evolve with the addition of four residential towers over 25 storeys, all now under construction. This includes the UK's tallest residential tower, marking a new era for the Manchester housing market.
Building for business
Developers are feeling confident. Once again the office sector has proved a fertile ground for investment. Leeds saw record levels of activity, delivering the highest volume since 2007, over 713,000 sq ft of space. In Manchester, the research identified a trend for landlords and developers to maximise their existing assets in the light of a rapidly expanding business community with eight out of the nine new office starts being refurbishments.
The visitor economy
Retail was king in Leeds. The delivery of new shopping areas doubled the average annual total of retail space with nearly 600,000 sq ft brought forward in 2016. The hotel sector is also benefiting from substantial investment as each city broadens and diversifies their tourist offer. Leeds witnessed the most hotel starts in 10 years and Manchester is adding to the 338 rooms delivered in 2016 with a further 1,040 rooms currently under construction across the city. The research suggests that 2017 will see the largest delivery of hotel rooms since data collection for this sector started in 2006.
Growth and resurgence in the North
The results of the crane surveys represent an unparalleled scale and volume of development not seen in the last decade. Sentiment towards city centre development is buoyant across each of the key sectors. This upward trajectory is expected to continue with development pipelines in some places extending to 2020. Across the board, investment and development has delivered real transformation to the skyline and landscape of our regional cities.
For further commentary and to download the report, please visit:
Manchester Crane Survey 2017 | Transforming the skyline
Leeds Crane Survey 2017 | Pipeline of prosperity
These reports are part of the Deloitte Regional Crane Survey series, research is also available on Birmingham and Belfast- www.deloitte.co.uk/regionalcranesurveys
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