New report hails Manchester market showing ‘strength and resilience’
Manchester property’s “strength, profile and resilience” in the face of wider economic factors has been praised in Deloitte’s new report.
Construction levels in Manchester are currently at among their highest since records began. But, as the report finds, the city’s property market still maintains huge investment potential.
In its annual report, measuring the volume of development taking place across Central Manchester’s residential, student and commercial property sectors, some key findings from Deloitte’s 2020 Crane Survey include:
- Number of completed property schemes in Manchester in 2019 (3,619) represents the highest delivery since 2016
- Level of commercial space under construction exceeded two million sq.ft. for the second consecutive year
- 15,500 new jobs will be created by new office completions, generating £309 million in wages
- 40% of all office space currently under construction in the city has already been pre-let by companies, with just under half of this taken up by businesses from the technology, media and telecom sector
Crucially, the report highlighted that new residential construction starts have begun to level off.
The number of residential units under construction is down on the previous year at 12,357 units, compared with 14,480 in 2018. John Cooper, Partner at Deloitte, suggested that 2018’s record results may have proven “to have been a peak in the current development cycle”.
This, however, further underlines the investment potential of property in Manchester.
Deloitte outlines that the new residential supply delivered since 2016 does not “sustain population growth beyond 2021”. Research suggests that as many as 35,000 new residents will move to Manchester city centre alone by 2025, while some industries are expecting to see a 50% increase in new job numbers over the next five years.
Not only does the reduction in new residential construction starts ensure that Manchester doesn’t become saturated, it further increases the level of under supply in the city.
Deloitte was also keen to stress that huge level of construction and demand for property in Manchester underlines the city’s strength as an investment location. While businesses and investors are approaching cities such as London with a degree of caution as a result of Brexit, the report’s data shows the level of confidence currently being felt in Manchester.
Cooper added: “To be clear, the latest results still represent one of the highest levels of construction activity since our records began in 2002, and given the geo-political uncertainty experienced in recent times, this is a further testament to the city’s market strength, profile and resilience.”
Source: Select Property Group