An annual review from Deloitte has revealed the UK’s largest regional cities are experiencing a building boom as construction activity nears record levels
Deloitte’s Real Estate Crane Survey has revealed a building boom across the UK’s largest regional cities.
According to the survey construction activity has reached close to record levels, with developers investing heavily in commercial and residential real estate.
The survey focuses on activity in Birmingham, Manchester, Leeds, and Belfast. While it was predicted the UK construction sector would contract after the vote to leave the EU it seems this is not the case, with investor confidence keeping the sector buoyant.
Birmingham
England’s second largest city saw a 10-fold increase in residential schemes starting construction last year. The survey revealed more than 2,000 units were started in the city centre.
Additionally, 1.4 million sq ft of office space is under construction, which represents a 50 per cent increase on the previous year and is the highest level of activity in the city since the survey began in 2002.
Manchester
A total of 22 residential programmes started last year, eight more than the previous high of 14 in 2007.
Leeds
The city of Leeds in Yorkshire experienced the highest levels of office space delivered to market for a decade.
Belfast
A total of 19 schemes were under construction in the capital of Northern Ireland, with 11 schemes completing in 2016. The growth in construction activity is being led by the education and tourism sectors, with retail and leisure investment also healthy.
Infrastructure leads to boom
Edward Bray, a Deloitte partner in Birmingham, said investment in infrastructure and transport was helping with the construction boom.
“Improvements in transport links and major infrastructure works have opened up new development opportunities in areas that would have been considered peripheral just a few years ago,” he said.
Simon Bedford, local government development partner at Deloitte Real Estate, said: “The results of our four crane surveys reflect the growth and resurgence in the regions, breaking records set more than a decade ago.”
“Sentiment towards city centre development is buoyant with residential rising to new levels, quite literally in Manchester, with the addition of towers that will alter the city skyline.”
“All sectors are active and we conclude that our regional cities are delivering growth and investment at levels not witnessed for many years,” he added.
