Manchester property construction ‘at highest level since 2008’

Manchester property construction ‘at highest level since 2008’

2,982 units are currently being built as the city establishes itself as the UK’s number one investment location.

Summary:

  • Manchester has witnessed close to 50% growth in the number of new residential units under construction in the city in the last 12 months
  • The demand for property in Manchester has pushed the number of planned new developments in 2016 passed pre-global recession levels
  • This pipeline of property suggests further sustainable economic growth in the coming years for a city already identified as a key investment location

Manchester’s skyline is currently littered with cranes – and this should be good news for the city’s investors.

2,982 properties across 13 schemes are currently being built in Manchester. The results from Deloitte Real Estate’s latest Crane Survey also identifies residential property as the primary type of real estate under construction, with nearly twice as many units currently under construction as last year and the highest volume since 2008.

The report said: “The 2016 Crane Survey shows that the number of new starts is up by 40% on 2014 and a number of major schemes that were highlighted as key projects in our last Crane Survey have now been delivered (20 in total).

“The healthy pipeline for the study area indicates that the local economy will continue to go from strength to strength if these trends continue.”

Manchester is currently named by HSBC as the UK’s number one city for yields from property investment and is one of only two cities in the north of England where property values are now higher than they were in 2007. This has been fuelled by a demand for rental accommodation from one of the country’s youngest populations, and a critical lack of supply that will see more families than properties in Greater Manchester by 2026.

But it’s the anticipated growth created by the £50 billion Northern Powerhouse that’s also accelerated the levels of institutional property investment in the city. 70,000 new jobs and 125,000 new inhabitants are expected to arrive in Manchester over the next 10 years, with investors keen to acquire assets now to realise the highest yield and capital growth such sustained economic investment will naturally trigger.

 

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