High quality schemes, strong property prices and an increasing demand for office and retail units are seeing Bradford become a leading northern city, according to a new report by Knight Frank.
In its 2008 Market Activity Report, the national property agent predicts a ‘radical transformation’ of the city and outlines the evidence that Bradford is set for economic growth.
With 7,725 city centre homes in the pipeline, major international investors coming to the city for the first time and the Westfield shopping centre now undergoing preparatory works, Bradford is truly beginning to prosper.
In the retail sector, footfall in the Kirkgate Centre rose by a further eight per cent last year, and there has been strong demand for units, which re-let quickly when available. In the Foster Square Retail Park a new top rent of £30 per sq ft has been achieved, up from £27.50 in 2006, whilst Asda Living, who will become a tenant in Spring 2009, have been signed up at a rent of £32.50 per sq ft.
In the leisure sector, national and international hotel operators are showing strong interest in the city. In May this year Etap will open its 82-bed hotel on Canal Road, and an application is expected for a prominent mixed-use development incorporating a 200 bedroom hotel on Thornton Road.
Property prices continue to perform well despite the economic downturn, rising in Bradford by 112 per cent over the last five years, against a national average of 67 per cent. Specifically within the city centre prices have performed strongly, with a 90 per cent increase in the last five years.
The property prices are partly being fuelled by steady population growth – the local population is predicted to grow by 9.6 per cent over the next ten years, compared to a regional rate of 6.3 per cent and a national rate of 4.6 per cent, which is an increase of over 47,000 people.
In 2007 the stunning Gatehaus development was completed, and the iconic Eastbrook Hall is due to be complete later this year. MacAleer & Rush, who have an extremely strong track record in speculative developments, are investing in Bradford for the first time with a major mixed-use development featuring 70 apartments and 70,000 sq ft of office space.
The current lack of quality office accommodation presents investors in Bradford with a strong opportunity to service the pent-up demand, and schemes such as the MacAleer & Rush Southgate site, the Westfield centre, the Channel and the Listerhills Student Village will help address this need. These new developments are also expected to lift rents high of £18 per sq ft.
Westfield’s take up of 17,000 sq ft of office space at Vicar Lane further demonstrated their commitment to the city, whilst the largest office transaction was the 80,000 sq ft former Police Headquarters, which is earmarked for development.
Alex Munro, Partner at Knight Frank, said: “It is apparent that Bradford represents a clear opportunity for developers across the full mix of property sectors. The price growth that has been experienced in the residential sector, the continuing progress in the retail sector and the planned office schemes indicate growing developer and occupier confidence in the city.”
Stephen Talboys, Director of Regeneration for Bradford Centre Regeneration, said: “In 2007 investment on site in the city centre totalled £480 million, and over 3,600 new homes were put into planning. We’re really seeing the ambitious plans for Bradford being brought to life with the help of national and international developers.
“The report emphasises the importance of high quality developments in successfully regenerating Bradford, and we are committed to bringing the very best facilities to the city. 2008 will be an even stronger year as Westfield starts full works on site, Eastbrook Hall is completed and further developments are brought into planning. Confidence is rising in Bradford as regeneration is being delivered on the ground.”
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