2020 was strong year for property development in Manchester

5th February 2021

By Anna Bibby

Deloitte have just released their latest crane survey for Manchester and the findings are very promising, showing that the city’s development market remained resilient in an otherwise challenging year. In the survey, Deloitte revealed that 35 schemes completed in 2020, which is the highest figure recorded since records began in 2002, and a further 24 schemes started construction, an impressive 45% increase from the number of schemes started in 2019. Additionally, there were 4,914 new homes delivered to the market and there are a further 12,000 currently under construction.

Residential developments were by far the biggest driver of activity throughout Manchester - out of the 72 schemes that are currently under construction in the city, 46 are residential developments and an overwhelming 16 out of 24 developments started construction in 2020. There are also 11 office developments, 10 new hotels, four education and research schemes, two student schemes and two retail schemes that are all currently under construction.

John Cooper, partner at Deloitte, said: “Manchester’s vibrant culture is a huge selling point for the city and will play a hugely important role in its economic recovery, providing a boost to businesses of all sizes. Confirmation that OVG are set to bring forward £350m of private investment into the city, that includes construction of a new 23,500 capacity indoor live entertainment arena, demonstrates confidence that the hospitality industry will recover. Not only will this allow the city to attract the highest profile sporting and cultural events, but it will deliver significant benefits to local communities through the creation of new jobs, training opportunities and community assets, helping to make that bounce back a reality.”

This clearly demonstrates how much of a great location Manchester is for investors. Despite the pandemic, demand in the Manchester residential market remained strong. While people elsewhere in the country were looking to relocate out of inner-city locations, Manchester city centre continued to have high appeal to prospective tenants. According to JLL, average rents in Manchester increased by 3% in 2020 and they are expected to grow a further 16.5% in the period through to 2024.

The construction sector was also performing well in other major cities across the country. Birmingham saw a record 2,072 units delivered to the market, with interest remaining high in the city thanks to the forthcoming HS2 project. The city also saw 1,458 student beds completed - the highest figure recorded since the crane survey started. Construction in Leeds levelled out in 2020; 12 new schemes had started in the city, which was the same number recorded in 2019, and 1,211 new residential units had completed. The most notable completion was that of the new Channel 4 headquarters. This is only going to act as a catalyst for further growth in Leeds and will be reflected in the city’s property market - according to JLL, house prices in Leeds are expected to grow by 13.7% in the next five years and rents are expected to grow by 14.2%.

There continues to be a lot of activity in the UK’s property sector and construction sector, which is a key indicator that there is a high volume of interest from investors.

Looking to make your next buy to let investment? Get in touch today!

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2020 was strong year for property development in Manchester

05 February 2021

Deloitte have just released their latest crane survey for Manchester and the findings are very promising, showing that the city’s development market remained resilient in an otherwise challenging year. In the survey, Deloitte revealed that 35 schemes completed in 2020, which is the highest figure recorded since records began in 2002, and a further 24 schemes started construction, an impressive 45% increase from the number of schemes started in 2019. Additionally, there were 4,914 new homes delivered to the market and there are a further 12,000 currently under construction.

Residential developments were by far the biggest driver of activity throughout Manchester - out of the 72 schemes that are currently under construction in the city, 46 are residential developments and an overwhelming 16 out of 24 developments started construction in 2020. There are also 11 office developments, 10 new hotels, four education and research schemes, two student schemes and two retail schemes that are all currently under construction.

John Cooper, partner at Deloitte, said: “Manchester’s vibrant culture is a huge selling point for the city and will play a hugely important role in its economic recovery, providing a boost to businesses of all sizes. Confirmation that OVG are set to bring forward £350m of private investment into the city, that includes construction of a new 23,500 capacity indoor live entertainment arena, demonstrates confidence that the hospitality industry will recover. Not only will this allow the city to attract the highest profile sporting and cultural events, but it will deliver significant benefits to local communities through the creation of new jobs, training opportunities and community assets, helping to make that bounce back a reality.”

This clearly demonstrates how much of a great location Manchester is for investors. Despite the pandemic, demand in the Manchester residential market remained strong. While people elsewhere in the country were looking to relocate out of inner-city locations, Manchester city centre continued to have high appeal to prospective tenants. According to JLL, average rents in Manchester increased by 3% in 2020 and they are expected to grow a further 16.5% in the period through to 2024.

The construction sector was also performing well in other major cities across the country. Birmingham saw a record 2,072 units delivered to the market, with interest remaining high in the city thanks to the forthcoming HS2 project. The city also saw 1,458 student beds completed - the highest figure recorded since the crane survey started. Construction in Leeds levelled out in 2020; 12 new schemes had started in the city, which was the same number recorded in 2019, and 1,211 new residential units had completed. The most notable completion was that of the new Channel 4 headquarters. This is only going to act as a catalyst for further growth in Leeds and will be reflected in the city’s property market - according to JLL, house prices in Leeds are expected to grow by 13.7% in the next five years and rents are expected to grow by 14.2%.

There continues to be a lot of activity in the UK’s property sector and construction sector, which is a key indicator that there is a high volume of interest from investors.

Looking to make your next buy to let investment? Get in touch today!

Anna Bibby

Did you find this article helpful?


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