UK regional cities are reporting record levels of construction activity as developers’ confidence for city centre residential development remains buoyant.
This is according to the latest report in the Deloitte Real Estate Crane Survey UK series, which monitored construction activity in Belfast, Birmingham, Leeds and Manchester last year.
In Birmingham, the survey identified 24 new construction starts breaking ground. The number of residential schemes starting construction was up by almost a third to 13 from the previous year, delivering 2,500 units this year alone.
Student housing schemes in the city are up by 53% and are set to deliver 1,782 bed spaces, while the city’s office development has surpassed 1 million sq ft for the second successive year, with more than 1.4 million sq ft currently under construction.
In Manchester, 20 new residential schemes started construction last year, exceeding 2008 levels for the second year running, while across the 41 housing schemes, 11,135 units will be delivered to market.
In the office sector, five new developments started, bringing total office space currently under construction to 1.5 million sq ft, with six residential schemes exceeding 25-storeys on completion.
In Leeds, the number of residential units under construction is at its highest in a decade – 1,586 across five development sites. There were four new starts in the higher education sector, adding over 500,000 sq ft to the development pipeline.
The Belfast Crane Survey, now in its second year, has recorded nine new schemes and a total of 25 schemes under construction. Residential development, albeit lower in volume than other cities, has started to come forward.
However, it is hotels that dominate Belfast’s figures with more than 1,000 new hotel rooms currently being built and all due to complete this year, the highest number of any of the cities in the survey.
In addition to the four UK cities, the crane survey series has also embraced Dublin’s development activity for the first time. Ireland’s capital city has more than 4 million sq ft of office space under construction, as well as 3,528 residential units.
Dublin’s crane survey has also recorded 13 major student accommodation schemes under construction, set to deliver 4,529 bed spaces when completed.
Simon Bedford, partner and regional head at Deloitte Real Estate, said: “Residential development stands out this year. The surveyed cities have shown a marked increase in housing development, in some cases doubling activity from the previous year. Our UK crane survey data shows a collective total of nearly 17,000 residential units currently under construction in these cities, ensuring housing targets are being taken seriously and developers are striving to meet demand.”
Commenting on the results, Joe Thornton, founding director of Cast consultancy, said: “The result of Deloitte’s annual crane survey shows how the UK’s regional cities continue to go from strength to strength.
“At a time of severe housing shortages in UK cities, increasing the delivery of homes is vital. However, the resilience of the industry should not lead to complacency on the industry’s part.
“As a sector, we must continue to look at innovative and efficient ways to deliver new homes throughout the country, taking a long-term perspective on the delivery method that seeks to plug the skills gaps and improve build quality. If we can’t address these issues, construction activity in the regions is likely to go south.”
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