DELOITTE Real Estate has published its 2013 Crane Survey, revealing that there are 19 new developments under construction in Manchester city centre, over three times more than in 2012.
The construction industry in Manchester is optimistic and though developers are still quietly cautious, we are already aware of several projects
The total number of projects under construction is 21.
The Crane Survey research assesses construction activity across five major UK regional cities, Manchester, Birmingham, Leeds, Edinburgh and Glasgow, with particular focus on a number of key sectors.
In 2012, there were just six new start projects in Manchester.
Of the 21 developments underway at present, 961 residential units, 1,246 student beds and 342,500 sq ft of office space is being built – of which 33% is already let. There were 19 new starts in 2008,which puts activity levels in the city at their peak since pre economic crisis times.
There are now spades in the ground at eight new developments located in the Salford Fringe (apparently this is not an arts festival but a district), Northern Quarter and Ancoats areas, representing the largest residential construction volume since 2009.
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.”
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 that will deliver new space to the market but with only a handful of properties offering Grade A floorplates over 10,000sq ft, it is anticipated that demand will start to drive the construction of further projects.
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.”
One St Peter's Square under construction
The hotel and leisure sector has remained buoyant with activity levels supporting Manchester’s status as a prime business visitor and tourist destination.
Two new hotels completed construction in the latter half of 2012 adding 343 rooms to the Manchester hotel market and though no new hotel space will be completed in 2013, three new schemes have started construction during this year’s survey. Two of these are standalone sites and the other is part of the First Street North development, bringing the total number of bedrooms under construction to 633.
“The next 12 months will be extremely interesting as the skyline of the city changes shape. The construction industry in Manchester is optimistic and though developers are still quietly cautious, we are already aware of several projects with planning permission or those being prepared for planning that should see even more space on site come 2014/15.”
Not these cranes
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