Research:

Research

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Manchester Crane Survey 2025

Solid ground: Building through uncertainty

Manchester and Salford continue to demonstrate remarkable resilience in the face of economic headwinds, solidifying their position as a thriving hub in the UK. This enduring strength is evident in the cities’ diversified economy, commitment to social equity, and focus on sustainability. While the construction sector faces challenges, Manchester's skyline remains active with cranes, reflecting ongoing investment in its future.

This report explores these dynamics further across four key themes: the resilience of Manchester and Salford's economy; the commitment to inclusive growth, connecting residents to opportunity; the factors driving its success as a thriving city centre; and its strategic focus on innovation as a catalyst for continued prosperity.

Our survey’s findings demonstrate that despite ongoing pressures, Manchester’s construction sector remains active and is very well placed for further development, positioning the city as a leader outside the capital.

John Cooper, Partner, Infrastructure and Real Estate

Key findings

Notwithstanding significant economic headwinds, 2024 saw 20 new construction projects break ground in Manchester and Salford. Whilst this does mark a third year of decreased starts, reaching the lowest point since 2014, overall activity remains strong and completions, with 27 projects delivered, represent a significant increase from the previous year.

The residential sector continues to drive momentum, with 11 new projects starting on-site and 16 completing construction. This sustained activity, particularly in the face of broader economic challenges, demonstrates ongoing confidence in Manchester and Salford's appeal as a place to live and invest.

Furthermore, the focus on refurbishment projects (representing five out of six new office schemes starting on-site in 2024) showcases a commitment to revitalising existing spaces and creating modern, sustainable work environments. This adaptable approach to development, combined with historical trends, suggests that Manchester and Salford continue to be extremely well-positioned for a stimulus of new construction activity in the coming years.

20 new starts

below the ten-year average of 28 and the lowest level of new activity since 2014

10,788

homes under construction, and set to be delivered over the next 4 years

Just under 1.1m sq. ft.

of office space delivered to market, with over 1.5m sq. ft. under construction.

27 schemes completed

and 58 projects remain on-site in 2024.

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

Analysis 1

Manchester and Salford's resilience: Navigating challenges, driving growth

Over successive Crane Surveys, Manchester and Salford have demonstrated remarkable resilience, weathering economic fluctuations and adapting to evolving landscapes. This success stems from a strategic focus on economic diversification, social equity, and environmental sustainability.

Analysis 2

Inclusive growth in Manchester and Salford: Connecting residents to opportunity

Manchester and Salford are committed to inclusive growth, ensuring all residents share in the city's economic prosperity. This involves a multifaceted approach, encompassing diverse housing options, an inclusive labour market, and equitable access to opportunity.

Analysis 3

Building a Buzz: A thriving city centre

Manchester and Salford's vibrant 24/7 city centre culture, bolstered by strong transport links and a holistic development approach, is attracting residents and visitors, driving growth in population and the tourism and hospitality sectors.

Analysis 4

Fuelling growth through innovation: A strategic approach

Manchester and Salford are establishing themselves as leading innovation hubs by prioritising technology-driven growth, attracting tech businesses, and investing in a skilled workforce and smart city initiatives.

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 3 January 2024 and 3 January 2025.

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 2025