The results of Deloitte’s 2023 Manchester Crane Survey revealed it’s been another successful year of construction and development across Manchester and Salford.
With positive growth in a number of sectors, 25 new construction projects began in 2022, and there were a number of new residential, office and leisure schemes brought forward. With an increasingly dense population, more people are able to live, work and play in this exciting area of the North West.
Residential development
Salford and Manchester’s housing market has seen substantial growth in recent years with thousands of new-builds brought forward. Since 2014, there have been a whopping 23,238 new homes delivered across the regional centre.
During this time, residential market activity was predominantly focused on the delivery of build-to-rent properties in the two city centres. And Salford recorded the largest share of residential development.
In 2022, 2,734 homes were delivered to the market, and 17 new residential developments were under construction, which is the highest figure since 2018. Moving forward, 11,759 new homes remain in the pipeline, which is creating a steady supply for the next three years.
Based on the current rates of occupation of residential development and construction, a further 20,000 people may relocate to Manchester and Salford across the next three years. And local housing targets suggest this could continue to 2035 as the area sees significant population growth.
Office schemes
Workspace and office construction levels were also positive in 2022. Looking at the data, 1.7m sq ft of office floorspace was under construction and 28% of what was under construction was already pre-let.
Additionally, a total of 702,000 sq ft of office floorspace was delivered, and five new office schemes were on-site, which will create an additional 1.1m sq ft of space. A substantial number of businesses are continuing to flock to Greater Manchester as a whole due its strong business opportunities and high-quality local talent.
This region has become a hotspot for a range of global and national companies, in addition to startups. Manchester’s global competitiveness in the tech sector in particular is leading the growth in the city’s office sector.
As more businesses open their doors in Manchester and Salford or choose to relocate their headquarters or offices there, this is set to continue bringing more people to the city, particularly graduates and young professionals.
Concluding thoughts
With so much development and investment continuing to come to Manchester and Salford, it makes it an especially appealing time to live, work and invest in this thriving area.
Both the owner-occupier and rental market will likely continue to see significant growth in the coming years. And more property investors are expected to look to this city-region for strong capital appreciation prospects and rental yields.
At Salboy, we have a range of new-build and off-plan properties available in Manchester and Salford. If you’re interested in buying in this growing area, please get in touch with our local team of expert advisors.
