Posted on 1/02/2017 by Lee Hiskett
The largest UK regional cities are experiencing a construction boom, not anticipated by the scaremongers following Brexit. The attraction of city centre living is helping as are the new transport links to certain parts of the UK.
Leeds, Manchester, Birmingham and Belfast have all seen big jumps in the levels of development across a number of sectors according to the latest Deliotte crane survey.
A 50% increase for Birmingham of office space under construction sees figures rise from 969k sq ft to 1.4m sq ft. This level of activity not seen since the report forst began back in 2002.
It's not only business construction that Birmingham is happy to see. A massive 10x increase of new residential schemes began construction last year making over 2,300 new units in the heart of the city.
As the HSL (High Speed Link) nears completion Birmingham is in turn fast becoming a new hub for the engineering and financial sectors. Privately rented homes in the city centre are providing bouyancy for the residential housing stock.
Manchester is also seeing strong gains but not as much as Birmingham. 22 new housing projects last year make this a new high from 2007's previous high of 14. A strong rental market as well as a big demand for office space is keeping the ball rolling.
Leeds also reports strong demand for office space not seen since 2007 and has 600k sq ft of retail projects in progress.
Belfast, now included in the report is showing an increase of 70% of projects under construction since last year. The activity from the residential side was less marked with just 84 units completed last year with none due to reach the market this year.
The positive sentiment was echoed by Deloitte Real Estate development partner Simon Bedford who said despite economic prosperity being limited to London we are seeing resurgence and growth in the UK's regional areas. “All sectors are active and we conclude that our regional cities are delivering growth and investment at levels not witnessed for many years,” he said.