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Birmingham Post
Birmingham Post
Business
Jon Robinson

Manchester’s cultural sector leads sustainable construction boom despite fall in new homes being built

Manchester's cultural sector lead a boom in construction across the city in 2022, according to new figures.

Deloitte's Manchester Crane Survey has revealed that 381,000 sq ft of new leisure and retail space was started to be built last year, alongside a record delivery of over 1,500 new hotel rooms.

Over 700,000 sq ft of office space was also completed in the year, a figure that is above a 15-year average while education construction remained strong with 263,000 sq ft delivered in 2022.

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However, the survey also shows that the 2,724 new homes that were completed was the first decline for seven years.

Leisure, Tourism and Hospitality

(Vincent Cole - Manchester Evening News)

As well as the 381,000 sq ft of leisure and retail space currently under construction, developments including Factory and Co-op Live are set to open during 2023.

Manchester’s hotel market boomed in 2022 with 1,504 rooms delivered, nearly matching the previous three years combined - 1,594.

Notable tourist attractions delivered in 2022 included the opening of the Mayfield park - the first new park in the city centre in over 100 years.

Joanne Roney, chief executive of Manchester City Council, said: "As a city, we’re incredibly proud of our strong cultural ties, providing a diverse and vibrant destination for people from around the world.

"The last few years have only worked to solidify this, with work underway on major cultural attractions including Factory International, Co-op Live and the completion of the Mayfield park ensuring Manchester remains one of the UK’s most exciting destinations for tourists and residents alike."

Commercial Offices

The end of 2022 saw a total of six office developments complete across Manchester and Salford, delivering 702,000 sq ft of new floor space.

Enterprise City provided 402,900 sq ft of office space in the St John's area, with tenants such as global media giant WPP and Booking.com.

A total of six office developments remained under construction, set to deliver 1.7 million sq ft of office floor space, sitting above the 15-year average of 1.1 million sq ft.

John Cooper, partner at Deloitte, said: "New builds still dominate the market, making up 89% of office space currently under construction and new schemes are increasingly pushing the boundaries in terms of environmental credentials as they look to future proof against market trends and what is a rapidly evolving area of the office market.

"Refurbishments currently make up 11% as owners look to minimise embodied carbon and future proof their estates.

"With many companies now choosing hybrid working models, it's encouraging to see such a strong pipeline of office space development driven by a desire for more flexible office space utillisation, enhanced environmental credentials and overall quality of employee experience.

"In addition, as new EPC minimum requirements hit commercial offices in 2025 and again in 2027 as well as 2030, the ESG credentials of existing office spaces is likely to only further increase, particularly as owners are compelled to retrofit and decarbonise their existing estate."

Residential

Deansgate Square East Tower (Rightmove / AIHOMES LIMITED)

By the end of 2022, 2,734 homes were delivered, marking the first decrease in seven years.

However, the survey shows that the pipeline of new homes remains strong, with 11,759 properties expected to be delivered over the next three years based on anticipated completion dates.

Salford city centre has remained the leading area for residential development, with 13,578 homes completed since 2014.

In Manchester city centre, Great Jackson Street has helped to deliver 2,632 homes since 2014, notably with the Deansgate Towers development.

Ancoats and New Islington has also helped to deliver 2,760 new homes.

Mr Cooper added: "An increase in city centre living means people's commutes are shorter and they have access to more sustainable modes of transport.

"It's helping to facilitate a more sustainable way of living and driving a reduction of CO2 emissions per capita across Manchester.

"Residential hubs also supporting businesses in the area through additional footfall, ultimately driving growth in the local economy.

"As we continue to see new residential developments across Manchester, what’s clear is the need to design neighbourhoods in a manner that ensures they can successfully co-exist with leisure and cultural activities that sit at the heart of Manchester’s identity and are important hubs for the city’s economy."

Education

SODA (UGC MEN)

Manchester delivered 263,000 sq ft of floor space in the year, with a further 306,000 sq ft to be completed in 2023.

Manchester Metropolitan University’s new School of Digital Arts (SODA) provided facilities to aid the development of the city's growing tech and creative sectors.

When looking ahead to the next few years of development in Manchester, Mr Cooper said: "As in previous years, Manchester is showing positive levels of development as we head further in 2023.

"Despite economic headwinds there is much to be excited about, with a strong development pipeline promising key investments in green economic growth and enhanced resilience.

"With sustainability sitting at the heart of Manchester’s strategy, transport will be a particular focus.

"As the city council aims to reduce car-based trips into the city, continued investment into cycling infrastructure, enhanced walking and cycling routes and the ongoing process of removing cars from the city centre will all be priorities.

"Other, larger scale projects will help to further consolidate this, including planned expansions to the Metrolink and expanding Greater Manchester’s greener modes of transport."

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