Construction activity varied across Manchester and Salford in 2025, according to the latest Deloitte Manchester Regional Crane Survey.
It recorded increased new starts across the hotel, student accommodation and education sectors, while the residential and office market saw reduced levels compared to last year. Across the city, new starts dropped to 17 in 2025, while on-site projects under construction sat at 58.
The Manchester Crane Survey is part of Deloitte’s Regional Crane Survey series, which monitors construction activity within four UK cities, across a range of sectors including office, residential, hotels, retail and leisure, education and student housing. Across all surveys – Belfast, Birmingham, Leeds and Manchester – 53 new construction starts were recorded in 2025 compared to 47 in 2024.
Seven new residential schemes began construction in 2025. This is lower than 2024, when 11 schemes began, but matches levels seen in 2023. Units under construction also fell to 8,023, this first time the number has dropped below 10,000 since 2016, while 3,422 units completed in 2025.
Despite this, the residential pipeline remains strong as Manchester’s city centre population grows. In 2026, 5,500 residential units are expected to complete, marking the second highest figure since the Manchester Crane Survey began, and a further 15,332 homes have planning permission, providing a significant pipeline.
John Cooper, real estate and infrastructure partner at Deloitte, said: “Manchester’s residential sector continues to be a key enabler of significant population growth in the city centre, yet faces a critical balancing act. While 2025 saw reduced activity due to inflationary pressures and regulatory changes impacting construction timescales and market confidence, residential construction levels remain strong, reflecting the city centre’s enduring appeal as a beacon for investment and regeneration.
“However, a robust pipeline for 2026 should support continued strong levels, though a more cautious and selective approach from investors means developers must work harder on their proposals. Public sector funding will also be crucial in unlocking projects that support ‘good growth’ amidst ongoing headwinds. A focus on further investment, timely decision making and labour force skills are essential to driving construction activity.”
The expansion of Manchester’s cultural venues, with openings of Co-op Live and Aviva Studios, coupled with existing venues, has helped to drive forward the visitor economy. Hotel delivery has kept pace, with three new schemes starting construction in 2025. This brings the number of hotel rooms under construction to 1,621, while 391 new rooms were completed in 2025. In the retail sector 287,000 sq. ft. of space is under construction.
Cooper said: “Events capacity in Manchester has been significantly increased over recent years, with the city able to host multiple major events all in one weekend. Investment in the city’s hospitality and leisure sector is facilitating this. There is a strong pipeline of new hotel rooms and retail space, along with strategic infrastructure projects making Manchester a more attractive place for visitors, boosting the city’s global profile.”
After a slower few years for student housing activity, 2025 saw activity pick up as Manchester’s Oxford Road Corridor continues to grow. Four new schemes began construction in 2025, bringing total schemes under construction to five, delivering 3,894 bedspaces to market. With no new bedspaces delivered in 2023 and 2024, 2025 saw 1,803 new bedspaces completed.
As student numbers grow, Manchester’s leading research and educational institutions are driving investment in the south of the city centre. Over the last 15 years, 3.01 million sq. ft. of new education and research facilities have been delivered. In 2025, one new start – the Upper Brook Street scheme began work – with 458,000 sq. ft. under construction. The pipeline remains strong, with 2.1 million sq. ft. approved for construction and actively seeking funding.
Cooper said: “Manchester has become an internationally renowned city for science, technology and innovation, with its region’s universities welcoming thousands of students every year. With over 2 million sq. ft. of space delivered since the Corridor’s Spatial Strategy endorsement in 2017, the city’s innovation district is helping to drive world-leading research and stimulate regional growth.”
Focus on quality dominates office market
There was one new office start, Republic at Mayfield. This brings total office space under construction to 821,000 sq. ft.
2025 saw one of the highest office completion rates on record, with 1.26 million sq. ft. coming to market, the highest since 2008. There is also a further 5.34 million sq. ft. of office space that has secured permission and is yet to be implemented, providing a healthy pipeline.
Cooper said: “Manchester’s commercial office market is characterised by strong demand and low prime vacancy rates. Despite challenges in new supply due to increased capital costs and construction inflation, the market is responding strategically. This includes a focus on high-quality refurbishments, which are meeting demand for flexible workspace alongside more traditional lettings. 2025’s new office start at Mayfield will help to address a shortage of premium new build office space, pointing to improving viability and a likely future market correction in higher rents.
“A combination of these strategic projects and public-private funding models, including support from the Greater Manchester Good Growth Fund, will be crucial for meeting demand and unlocking future development.”
