The volume of real estate schemes to be completed this year will break the current record for the city seen in 2019, boosted by a pipeline of 8,800 residential units, according to Deloitte.
The consultancy’s latest annual Crane Survey found that the number of schemes completed last year rose to its highest level since 2006 and the second highest since the survey began in 1999, with 27 schemes, driven mainly by the residential sector.
In total, 3,619 housing units were delivered to market, with an additional 12,357 under construction. Schemes included Renaker’s West Tower at Deansgate Square, Salboy’s Trinity Blackfriars, and the first phase of Manchester Life in New Islington, among others.
In the office sector, a total of 427,000 sq ft of space was brought to the market from schemes such as Hermes Investment Management and MEPC’s Dantzic scheme in NOMA; No.8 First Street by Patrizia, GMPF and Ask Real Estate, and Allied London’s ABC Building on Quay Street.
Manchester’s first student residential development since 2017 was delivered in 2019, with 384 new beds added by Vita Student at Circle Square.
This year is set to be another record year for completions, with the sizeable residential pipeline set to complete in 2020 and more than 2m sq ft of office space under construction at present, according to Deloitte’s study. In terms of occupiers, the telecommunications, media and technology sector has taken the most space, with the serviced office and co-working sectors following closely behind.
A further 400,000 sq ft of leisure, retail and hotel floor space is under construction and due to complete this year, including space earmarked for bars, restaurants and convenience stores.
There are also 2,466 hotel rooms under construction across 11 sites, which would bring a 24% increase in hotel rooms to the market since 3,000 in 2014. Only 344 hotel bedrooms across three schemes were brought to the market in 2019, including 304 from Dakota Hotel on Ducie Street and Capital & Centric’s Ducie Street Warehouse, both near Piccadilly train station.
Meanwhile, Downing’s River Street scheme, expected to complete in July, and Unite’s Wakefield Street scheme, due to complete in September, will bring 1,410 student bedrooms to the market, the report notes.
Simon Bedford, partner at Deloitte Real Estate, said: “In 2014, we saw a huge surge in construction activity across both Manchester and Salford that lasted, in earnest, until 2019. Now, while the number of new starts is levelling out, we are seeing the results of Manchester’s construction boom reflected in the city’s skyline.
“The strength of the commercial sector is a promising sign for the city, as we continue to see an increased demand for high quality office space.
“When these office schemes ate completed, it is estimated that this will add 15,500 new jobs, £570m in gross value added and £309m in wages to the regional economy.”
Richard Leese, leader of Manchester City Council, said: “New residential schemes have helped to kickstart regeneration in many key areas of the city. Emerging neighbourhoods such as New Islington and Ancoats are now some of the most desirable locations in Manchester, with a new generation of social housing helping to support communities.”
Article taken from placenorthwest.co.uk on 4th February 2020