The story of Manchester has been one of accelerating growth for many years now as it strives for ever-greater heights. The Deloitte Manchester Crane Survey 2020 – released in February 2020 – confirms the extent to which Manchester is expanding.
Overall, Deloitte anticipates that the volume of real estate schemes to be completed in 2020 will break the current record that was set in 2019, with 47 schemes reportedly coming to market in the next 12 months across all sectors.
The key for any city looking to grow its economy is the availability of high quality office space for growing businesses to spread out into. It is also a vital tool for attracting multinational companies into the city – and in this regard, Manchester excels. The last year has seen BT, Amazon, Huawei and other such companies open headquarters in the city.
Manchester needs to continue building office space to keep the momentum up, and the Crane Survey shows that this is happening. For the second year in a row, more than 2.1 million sqft of office space is under construction in the city, of which 40% is already pre-let, proving that demand remains high.
What’s more, Deloitte anticipates that this extensive office development will lead to the creation of an additional 15,500 full time jobs by the end of the year – a perfect illustration of the link between development and economic growth.
Office space development is also linked to population growth, as more and more people move to the city to take advantage of the employment opportunities on offer.
The State of the City Report 2019 from Manchester City Council shows that the city centre population alone will reach 100,000 by 2025 – equivalent to an additional 5,000 people per year. All of these people will need homes, and the future of the residential sector in Manchester is perhaps the most interesting part of the latest Crane Survey.
More than 3,600 residential units were completed across the city in 2019, and it is possible that 2020 could see another 8,880 completed. However, this headline growth figure does not tell the whole story.
The overall number of homes under construction in Manchester has fallen to 12,357 – a 17% year-on-year reduction – and the number of new starts on site is also set to decline this year. Whilst the level of completions has been enough to sustain population growth thus far, it is unlikely to in the future unless many more new homes are built in short order.
The combination of a rapidly growing population and a stalling pipeline of new homes means that property values in Manchester will shoot up in the coming years as competition for homes increases. House prices in Manchester are already growing far more quickly than the national average according to the latest UK Cities House Price Index from Hometrack, and this will continue in the foreseeable future.
This makes it the perfect time to buy a property in Manchester and take advantage of the upcoming capital appreciation. For more information on the Manchester market and our available properties in the city centre, please click here.