Crane survey shows recovery hitting regional cities

Grant Prior 11 years ago
Share

The number of new construction schemes starting across five major UK city centres has risen by 80% over the last 12 months compared to last year.

Research conducted by Deloitte Real Estate records show 45 new projects have been recorded across Birmingham, Manchester, Leeds, Edinburgh and Glasgow.

Head of research at Deloitte Real Estate, Anthony Duggan, said: “Compared to the less than positive story last year, our regional research now illustrates a rise in development activity, matching the recent improvement in the UK economy.

“We have recorded construction increases in office space and student accommodation as demand for both continues to rise.

“Similarly city centre residential is beginning to appear back on the agenda with a number of schemes breaking ground.”

The research described the commercial office market as “on the cusp of a new development cycle” with a total of 11 new office construction starts.

This represents the largest number of new starts in five years, and is set to deliver 837,000 sq ft to markets that have seen little development over recent years.

Student housing is still a growth market with new construction of purpose-built accommodation quadrupling with ten new starts.

The market for city centre residential development has improved over the past year with increasing developer confidence and financial government support resulting in a two-fold increase in the number of units being built.

Approximately 1,400 units are under construction across three of the city centres monitored in the survey – still way below the 10,135 units recorded in crane surveys at the peak of the market in 2007.

Manchester has seen a surge in development activity confirming it is the most active city in the survey.

The city recorded 19 new construction starts including eight residential schemes set to deliver nearly 1,000 city centre units.

Scotland’s cities are also seeing development increase with Glasgow recording four new construction starts compared to none last year, and Edinburgh nine.

Duggan added: “The thrust of development activity this year sits with Manchester, Edinburgh and Glasgow, but the results are generally good news across the board with four out of five cities showing an increase in new starts compared to just one city in 2012.

“Residential development has seen a two fold increase with 1,400 units under construction, although this is still comparatively weak compared to the height of the market.

“Sentiment is certainly returning amongst home buyers and residential developers, with the help of government backed initiatives.

“This increase in construction is unlikely to be a one-off.

“With an improving residential demand, supply shortages appearing in a number of the commercial property sectors and signs of increasing activity from investors in regional commercial real estate.

“It looks like we will see more development activity over the next 12 months.”

Latest news

Staff stunned as engineering consultancy Clarkebond closes

Firm was only bought three months ago by rival Independent Design House Group
2 days ago

Vistry issues third profit warning in three months

Profit expected to fall £50m below forecast due to delayed completions
2 days ago

Miller Homes buys St Modwen Homes for £215m

Scottish house builder snaps up £368m turnover rival
5 days ago

Keltbray fine increased to £18m after failed bid rigging appeal

Contractor loses penalty discount for settling with competition authorities
6 days ago

Luxury house builder goes under with 70 job losses

Octagon Developments in administration after 40 years in business
6 days ago

Top Ten best read stories of 2024

The biggest headlines of an eventful year. Have a good one and here's to a successful 2025
6 days ago

BAM Nuttall fined £800,000 after concrete skip tragedy

Young labourer killed by falling bale arm
1 week ago

Keltbray infrastructure business reveals new name

AUREOS means "new dawn" after private equity acquisition
6 days ago

Stiffer fines for over-running street works from next Summer

Cash raised from lane rentals to be channeled into pothole repairs
6 days ago

£113m Basildon rental homes scheme seals build finance

Work expected to start early next year on Market Square project
6 days ago

Notting Hill Genesis seeks more tier 1 repairs contractors

London housing trust seeks eight firms for new £1.5bn repairs framework
6 days ago

Reclaimed steel oil rig columns worked into London office revamp

Curo will use reclaimed bricks and steel for Fitzrovia office overhaul
7 days ago

CITB delays levy approval consultation

Levy agreement talks pushed back by ongoing review into effectiveness of training body
7 days ago

Ofwat approves £104bn water industry spending plan

Household water bills to rise by 36% to fund quadrupling of investment
1 week ago

Costain/ Siemens JV clinches HS2 power supply job

£300m deal for HV power supply systems over the 225km route
1 week ago

Demolition team assembles on Multiplex London Wall site

Erith to start work next month at Deutsche Bank's former headquarters
1 week ago

Norwich Council acts to revive £300m Anglia Square scheme

Council uses Homes England funding to buy stalled site with planning for 1,100 homes
1 week ago

Go-ahead for 4,500-home Cambridgeshire new town

Waterbeach new town plan stalled three years ago after an Environment Agency objection
1 week ago

Henry Boot to take total control of Stonebridge Homes

Deal worth at least £30m
1 week ago

HS2 costs could hit £66bn

Government looking for next estimate to be lower
1 week ago

Mace to close construction logistics arm

Specialist business being wound down
1 week ago

National Grid to invest £35bn over next five years

Plan set out for record investment in electricity transmission infrastructure
1 week ago

Profits double at Barhale

Civils specialist sees order book top £1bn
1 week ago

Balfour wins 68km HV underground power cable deal

Main works to start next year on Eastern Green Link 2 job
1 week ago

Stunning site wrap unveiled on Sloane Street

Hoarding creates illusion of fully formed façade on £53m Galliford Try job
1 week ago

Heathrow Airport upgrade spend takes off again

Airport operator will spend £2.3bn over the next two years
1 week ago

Government buys back over 36,000 military homes

Public ownership deal to release wave of upgrade and new build work
1 week ago

Story Contracting staff braced for rail job losses

Work coming through slower than expected from Network Rail
1 week ago

Ballymore submits two plans for 3,700 East London homes

Construction could start in 2025 on Thames Road and Knights Road schemes
1 week ago

Blackpool council steps in on failed developer’s £300m scheme

Blackpool Central site clearance to start in the New Year as hunt starts for new developer
1 week ago

Contractor services