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Research

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Manchester Crane Survey 2026

Harnessing good growth

Notwithstanding global economic shifts and broader headwinds, Greater Manchester's economy has surpassed the £100 billion mark for the first time, growing by 28 per cent since devolution in 2015, consistently outpacing the UK average. This robust economic performance underpins a dynamic built environment, with strategic investment driving growth across key sectors, particularly in life sciences, commercial offices, and residential development.

The innovation and life sciences sector is a key driver. 458,000 sq. ft. of education, research, and health services floorspace is currently under construction, closely aligning with historical averages. Sustained activity, including major investments in new and existing spaces, positions Manchester as a global epicentre for science, technology, and innovation, attracting and retaining skilled individuals.

Manchester's commercial office market demonstrates strong demand, evidenced by low prime vacancy rates that outperforms established European hubs. While new supply faces bottlenecks in 2026 and beyond due to development finance, the market is strategically responding through comprehensive refurbishment of existing stock, which now constitutes over 68 per cent of Manchester's office pipeline. This focus on high-quality, amenity-rich refurbishments, alongside innovative public-private funding models, is crucial for meeting demand and unlocking future development viability.

In the residential sector, while the number of homes under construction has fallen below 10,000 units for the first time since 2016, Manchester continues to lead regional cities in delivery. The market is adapting to new regulatory challenges and improving Building Safety Act (BSA) processing timescales, alongside a planning permission pipeline of 15,332 homes. The Purpose-Built Student Accommodation (PBSA) market is also experiencing growth, with 3,894 units across 5 schemes under construction, the highest volume on record.

The city's vibrant experience economy continues to thrive, with 1,621 hotel rooms and 287,000 sq. ft. of new retail and leisure space under construction. Major events and strategic investments in cultural infrastructure, such as Co-op Live, are significantly boosting the local economy and profile, positioning Manchester to exceed pre-COVID visitor numbers and achieve its ambitious 2030 Visitor Economy Strategy targets.

While 2025 saw reduced activity due to inflationary pressures and regulatory changes, residential construction levels remain strong.

John Cooper, Partner, Infrastructure and Real Estate

Key findings

458,000 sq. ft. education, research, and health services floorspace currently under construction.
1.26 m sq. ft. commercial office space delivered in Manchester and Salford in 2025, the highest since 2008 (1.42m sq. ft.)
68% refurbishment's share of Manchester's office pipeline, up from 30% a decade ago.
8,023 homes currently under construction, with 3,422 completions in 2025.
3,894 PBSA units under construction; the highest volume on record despite highest delivery to market 2025 (1,803 bedspaces).
1,621 hotel rooms currently under construction.

Residential & Student Accommodation

Residential development remains the dominant sector, driven by an 11.4% annual increase in rental growth. 4,448 homes completed construction, including two co-living developments at Downing Living’s Acer Tower and Vita Group’s Union T1. 11 new residential schemes (2,410 homes) started on-site in 2024, meaning 10,788 homes are under construction and set to be delivered over the next four years.

No new student residential bedspaces were delivered to market in 2024. 2,687 bedspaces are under construction (in addition to work commencing on the Fallowfield Campus, albeit outside of our Crane Survey area). One scheme started construction in 2024 at Deansgate South (Fusion) and a further 9,780 beds are either at pre-planning or planning stage within the Corridor alone.

Office, Research and Education

The amount of refurbished and extended office space continues to grow, up 32% on the previous year, now at around 1.6m sq. ft. completed or currently under construction in 2024. Over 1.5m sq. ft. of total office floorspace remains under construction and is buoyed by varied pre-lets and co-working office occupiers.

No new education schemes started on-site in 2024; however, the delivery of circa 300,000 sq. ft. of new floorspace at Manchester Metropolitan University’s Science and Engineering Building added a further boost to the education offer in the Corridor. Phase 2 of the Manchester College on the former Boddington’s Brewery site is also expected to complete in 2025.

Retail, Leisure and Hotel

258 hotel beds were delivered to market in 2024 across two schemes, with a further 1,181 hotel beds set to complete construction in the next three years.

The opening of Co-op Live has added a further boost to Manchester's thriving tourism industry. Rebounding post-COVID, the tourism industry reaching £8.7 billion in Greater Manchester, with Manchester alone accounting for £4.65 billion and supporting 45,600 jobs.

Our thinking

Light rail yellow tram in the city center of Manchester, UK

Analysis 1

The catalyst of capital: Fuelling Manchester's innovation ecosystem

Greater Manchester is solidifying its reputation as an epicentre for science, technology, and innovation, particularly in the life sciences sector. Significant investment, both public and private, is driving the expansion of its knowledge economy, with substantial new research and education facilities under construction. This strategic focus positions Manchester as a leading hub for attracting talent and capital, outperforming national trends in key areas.

Aerial image of Manchester skyline featuring high-rise apartment buildings at Greengate during a morning sunrise.

Analysis 2

Space race: The quest for quality and capacity in commercial offices

Manchester's commercial office market demonstrates robust demand and exceptional resilience, evidenced by its low prime vacancy rates. Despite challenges in new supply due to increased capital costs and construction inflation, the market is strategically responding. A strong focus on high-quality refurbishment and innovative public-private funding models is unlocking investment, driving a "flight to quality" and anticipating rental growth.

Castlefield in Manchester, UK, on a sunny day

Analysis 3

The residential balancing act: Sustaining growth amidst new challenges

Manchester's residential sector continues to drive significant population growth, yet faces a critical balancing act. While new units under construction decreased in 2025, a robust pipeline of consented homes and record-breaking Purpose-Built Student Accommodation (PBSA) activity signal positivity. Improved regulatory efficiency and strategic diversification of housing options are key to meeting the region's ambitious growth targets.

Analysis 4

The experience economy: curtain up on growth and global appeal

Manchester's vibrant experience economy is a pivotal driver of the city's vitality, underpinned by substantial investment in hospitality and leisure. With a significant pipeline of new hotel rooms and retail space, major events and strategic infrastructure projects are boosting tourism and the city's global profile. This positions Manchester to exceed pre-COVID visitor numbers and achieve its ambitious 2030 Visitor Economy Strategy targets.

Methodology

Why?

A report that measures the developments taking place across Manchester and Salford city centres and their impact. Property types include residential, office, hotel, retail and leisure, student accommodation, education and research facilities, and healthcare.

Where?

Our Crane Survey research area covers Manchester City Centre and Central Salford.

What?

Developers building new schemes or undertaking significant refurbishments exceeding any of the following sizes:
office – 10,000 sq. ft.;
retail and leisure – 10,000 sq. ft.;
residential property – 25 homes;
education, healthcare and research – 10,000 sq. ft.;
hotel – 35 rooms.

When?

Data for the Crane Survey was recorded between 6 January 2025 and 5 January 2026.

How?

The local Deloitte Infrastructure and Real Estate team has monitored construction activity and planning permissions granted, supplemented by rigorous field research. This research has been verified by industry contacts and in-house research teams.

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Manchester Crane Survey 2026