A record number of new homes were constructed in Manchester and Salford in 2021, according to new figures.
A total of 5,549 homes were completed during the year, Deloitte’s latest Regional Crane Survey has said.
The report added that most were concentrated in central Salford, where 53% of the new homes were brought to market, following completion of Embankment West, The Filaments on Gore Street, and Middlewood Locks, Phase 2, among others.
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Meanwhile, 14 new residential developments broke ground in 2021, bringing forward the construction of 3,729 new homes.
Those added to a pipeline that now has 10,717 residential units under construction across 40 sites.
Now in its 22nd year, the annual Deloitte Regional Crane Survey monitors construction activity across a range of sectors including offices, residential, hotels, retail, education and student housing, and is seen as a barometer of developer sentiment and future supply.
Deloitte partner John Cooper said: "Whilst there are robust levels of construction for new residential developments, levels are reaching a more stable point of equilibrium.
"Yet, despite fewer residential units underway, it is key to note that overall volume of residential properties under construction remains the highest of any city outside of London."
However, completion of new commercial office space was 66% down in 2021, totalling at 404,584 sq ft across four completed schemes, after an "exceptional year for office delivery" in 2020 which was its highest level since 2008.
Overall, 1.34 million sq ft of new office space is under construction, with almost half of this currently pre-let (43%), Deloitte added.
The firm also said that although most on-site office schemes were new builds, in 2021, there was a growing trend of refurbishments compared to new builds. In Manchester, 28% is refurbishment as opposed to new build (72%).
Mr Cooper said: "ESG climate-related targets and occupier demand is set to drive a future pipeline of new building office development with exceptional ESG credentials.
"It also means an increased delivery of new floorspace being supported through refurbishment projects. Asset managers are looking to build resilience into existing buildings that struggle to meet regulatory requirements, due to be brought in during 2023 and 2030."
According to the survey, 938,876 sq ft of new education and research floorspace was completed in 2021; the largest amount delivered on record and included the opening of the new Manchester Engineering Campus. A further 518,836 sq ft of education and research space is under construction.
In total over 2021, only two purpose-built student accommodation (PBSA) residential developments were under construction - 84 Cambridge Street (62 beds) and Echo Street (242 beds). 84 Cambridge Street, located in the Oxford Road Corridor, was the only scheme to begin construction in this sector during 2021.
The survey also shows that there were 1,975 hotel bedrooms under construction in 2021 across eight schemes, a 17% decrease from last year.
Many of these hotel schemes are located within City Core, where there are six schemes under construction representing 1,525 hotel beds.
Despite challenges in the tourism sector driven by the pandemic and travel restrictions, two new hotel schemes started in 2021, both located within the city centre, Deloitte added.
Over 2021, the number of retail and leisure completions continued to rise, with 143,848 sq ft of retail and leisure floor space completed.
This is an increase of 35% from 2020 (106,700 sq ft) and well above the average annual level since 2014.
There is a further 477,558 sq ft of retail and leisure space under construction, largely brought forward as part of mixed-use developments, or new cultural offers benefitting from both public and private investment.
Deloitte partner Simon Bedford said: "Despite the overall level of construction cooling down from an intensely busy period of city centre regeneration, it’s encouraging to see resilience in activity across Manchester and Salford.
"As restrictions continue to lift and uncertainty wanes, the city has plenty of opportunity with a healthy pipeline of development, especially in mixed use schemes, pointing to confidence in regional city centres."
Mr Cooper added: "The pandemic has brought many changes, from the way we work, to our retail habits. Regionally we’re seeing this reflected in schemes switching use to fill gaps in areas of surging demand.
"For example, in Manchester, department stores are to be flexibly repurposed to satisfy the demand for new workspaces.
"There are a spate of exciting developments across the education sector in particular, with construction of new higher education facilities closely linked to the jobs and skills needed to diversify the economy and support business growth.
"Not only will this help to attract younger people to study but also potential live and work in the centre – contributing to Salford and Manchester’s growth."
