Surge in residential new starts marks another record-breaking year for Birmingham, Deloitte Regional Crane Survey reveals

During 2025, Birmingham’s Crane Survey recorded 23 new starts - a substantial increase from 11 in 2024, and the highest number for five years. The surge, particularly in the residential sector, has led to 40 developments currently under construction across the survey’s boundaries.

As with previous surveys, the residential sector continues to dominate, with 4,594 homes completed in 2025 across 13 schemes - the highest number of completed units recorded in the survey’s 24-year history.

Of the 23 new starts, residential accounted for all but six of the projects to start in 2025 (17), with the office sector recording two new developments and student residential, hotel, retail and leisure and education accounting for one each.

However, despite the rise in the total number of schemes under construction, the volume of units and upcoming floorspace has decreased due to several smaller scale developments breaking ground.

Zoe Davidson, infrastructure and real estate partner at Deloitte, said: “Our survey underlines the positive momentum Birmingham has harnessed, and the continued confidence in its future despite economic and regulatory challenges.

“Growth, particularly in the residential sector, has been driven by strategic public sector investment and a focus on positive place-making. Looking ahead, the key for the city is to build on its position as a place to invest and compete effectively to accelerate growth.

“The anticipated easing of inflation and interest rates, coupled with the strategic impact of devolution deals and significant public sector funding, is expected to unlock further major developments in 2026.”

The Birmingham 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.

The residential sector was again the driving force of activity in the city, evidenced by 17 new starts, up from six last year.

The city now has 6,822 residential units under construction, a slight reduction from last year despite the increase in new starts. 4,594 units completed in 2025, a rise from 3,180, and an historic high for the Birmingham Crane survey. More than half (55 per cent) of homes under construction are build-to-rent.

The Purpose-Built Student Accommodation (PBSA) sector saw 1,664 bedspaces under construction, with one new start. While slightly down from the last survey’s record for the number of units under construction, the overall pipeline of sites with planning permission is significant.

Elsewhere in the city, there were two new office starts (the same amount as last year). During 2025, 477,223 sq ft of office floorspace completed across six schemes, with a further 733,912 sq ft under construction across five schemes - 73 per cent of which are refurbishments.

In the education sector, two schemes completed, including a change of use for Birmingham City University, which also constituted a new start. However, going into 2026, there are no education schemes under construction.

After two years of no activity, the hotel sector saw one dedicated new start, and two mixed-use schemes also delivering hotel beds - the highest level of activity for five years.

The retail and leisure-led sectors saw one new start in 2025 - the refurbishment of Moseley Baths.

Davidson added: “New hotel schemes validate the sustained efforts in promoting Brand Birmingham through sporting and cultural initiatives, translating cautious optimism into tangible construction. Beyond individual developments, creating cohesive, attractive and functional places is proving critical for attracting investment, fostering community and enhancing the city centre’s economic vitality.”

Global professional services business Deloitte is set to move its Birmingham office from 4 Brindleyplace to One Centenary Way in Birmingham later this year. 

The company employs more than 1,000 people in the region - with the Midlands being home to one of the firm’s largest UK practices outside of London.