Construction activity remained “resilient” in Manchester and Salford in 2024, with 58 projects on-site, according to Deloitte’s annual Manchester Crane Survey.
“Completions also increased in 2024, with 27 developments delivered, a significant increase on 2023,” said Deloitte. “The residential sector continued to dominate construction activity across the city region.”
Despite this performance, 2024 was the third year in a row for decreased new construction starts in Manchester, with 20 new projects brought to site, compared to 21 in 2023.
This was below the ten-year average of 28 and the lowest number since 2014.
John Cooper, infrastructure and real estate partner at Deloitte, said: “You only need to look at the skyline in Manchester to see just how much the city has changed over the last decade, as it has transformed it into a dynamic innovation hub.
“Our survey’s findings demonstrate that despite ongoing pressures and a decrease in new starts, Manchester’s construction sector remains active and is very well placed for further development over the next few years.”
Despite inflationary pressures, the Manchester Crane Survey said the residential market remained strong in 2024.
“Across Manchester and Salford, 4,448 homes completed construction in 2024, with an additional 11 new residential schemes starting on-site, which are expected to add an additional 2,410 homes to market,” said Deloitte.
“With a total of 10,788 homes under construction, the projected completions are on track to meet Greater Manchester’s average annual target for residential delivery in Manchester for the next two years.
“The student residential market also delivered a strong year of activity. While no student schemes completed construction in 2024, the pipeline remains strong with 2,687 bedspaces under construction and further activity expected in the coming years in light of recent planning permissions.”
Cooper said: “Despite economic headwinds and political uncertainty shaping much of 2024, the residential market in Manchester continues to deliver strong results.
“The city’s commitment to addressing housing needs and the projected completions of approximately 9,000 new homes over the next two years means Manchester is on track to exceed the average annual demand for homes, identified in Greater Manchester policy.
“With Manchester’s leading higher education institutions also bringing in thousands of students every year, the city’s student residential sector is continuing to deliver more bedspaces, with a number of new permissions granted to ensure growing student demands can be met.”
Leader of Manchester City Council Bev Craig said: “The annual crane survey shows that Manchester continues to have a strong and growing economy, and our city and region remains one of the most important engines of growth in the UK – and one of the fastest growing places in Europe.
“The survey is a useful litmus test that makes sure that our city continues to thrive, and despite a challenging economic backdrop for much of the country, we are building record numbers of homes – including more affordable housing than at any other point in the last decade – we saw more than 1m sq ft of much-needed office space delivered to market last year alone, with more than 1.5m sq ft under construction, alongside a range of commercial space opportunities.
“Manchester is leading the way in construction, but this isn’t just about buildings. This is about driving investor confidence to create a long-term supply of development. This is about creating high quality employment opportunities that help our residents to prosper. And it’s about creating a global city that is attractive, welcoming and future proof.
“The pandemic presented a range of economic challenges for the UK’s towns and cities, and building has broadly slowed. Thankfully Manchester is bucking that trend and we are continuing to attract major business, investment and residential opportunities that will help meet demand and support our city’s ongoing growth.”