Construction levels in Manchester have returned to pre-recession levels, according to the latest Deloitte crane survey.
Residential construction has almost doubled compared to last year, with 2,982 units currently underway.
Retail and leisure development has also increased, following the completion of two major leisure destinations: the refurbished Corn Exchange (131,200 sq ft) and the cultural facility HOME, which brought 500,000 sq ft of mixed leisure and retail space to the city centre.
The hotel sector saw a spike in completions, with 648 new rooms, representing the opening of four hotels: Motel One, Melia, Hotel Gotham and King Street Townhouse.
The commercial sector has seen an absence of any Grade A space completed for the first time in 14 years.
However, the current volume of office space under construction is 1.04m sq ft – the highest level since 2008 – with around 520,000 sq ft expected to be delivered in 2016 and 2017.
The five major schemes under construction are No. 2 St Peter’s Square (161,113 sq ft); No 1 Spinningfields (362,607 sq ft); XYZ (160,000 sq ft); 101 Embankment (165,000 sq ft), and One New Bailey (125,000 sq ft).
The demand for space has meant that 78.4% of the space to be delivered in 2016 has been prelet.
Education-related developments dipped compared to the previous three-year average of 252,767 sq ft, with one completion of the National Graphene Institute in March.
No further significant student housing initiatives are under construction for completion in 2016 to 2017, the survey found.
Deloitte said the figures did not represent stagnation in the sector, as a number of schemes had not yet broken ground, including the University of Manchester’s redevelopment of Owens Park.
Sean Beech, head of Deloitte Regions Real Estate, said: “Manchester’s recent success, both politically and commercially, highlights the city’s credentials as a devolution exemplar for the rest of the North of England.
“Given the political backing of the northern powerhouse agenda, it will be important to examine how the city continues to adapt to this changing political landscape of devolved power.”
