It's another record-breaking year for Birmingham according to Deloitte’s latest Birmingham Crane Survey as both residential and student residential sectors hit new highs despite a challenging economic backdrop.
As with previous years, the residential sector led the way with 3,180 homes completed in 2024. 2,242 bedspaces are currently under construction in the student residential sector, both the highest amount recorded in the history of the Birmingham Crane Survey.
However, while two new records have been set, construction activity across the expanded survey area dipped to its lowest level since 2020. The number of projects which broke ground during 2024 dropped to 11 new starts, down from 20 in 2023.
Of the 11 new starts, residential accounted for over half with six schemes, with both the student residential and office sectors recording two schemes each. Infrastructure was added as a new sector for Birmingham in 2024 as work started on HS2’s Curzon Street station.
24 developments completed in 2024, with 36 schemes currently under construction, down from 44 in 2023.
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, education and student accommodation. Across all surveys – Belfast, Birmingham, Leeds and Manchester - 47 new construction starts were recorded in 2024 compared to 63 in 2023.
Zoe Davidson, a partner in infrastructure and real estate at Deloitte Midlands, said: “Across all the crane surveys this year it is evident there has been a slowdown in developer activity, but Birmingham continues to set new records despite a challenging economy.
“Rising inflation, labour and construction costs, and global economic conditions have all impacted developer activity with many schemes with planning permission yet to break ground. The retail, healthcare, education and hotel sectors reflect a slowing of activity, with no new schemes starting on site, but the planning pipeline is strong across all sectors.”
For the first time in its 23-year history, the latest Birmingham Crane Survey has expanded its boundaries to align with the definition of the city centre as set out in the new ‘Our Future City Plan’, published last year and its ambitious targets.
2024 was another record-breaking year for the residential sector in Birmingham. A record 3,180 units were delivered across 17 schemes. The two largest schemes were located in the City Heart with 504 Build-To-Rent (BTR) units delivered over 19 storeys at The Bath House and Cortland’s The Square delivering 440 BTR units across 36 storeys on Broad Street.
The outlook is also bright for other sectors, with developments in the pipeline totalling c.6 million sq. ft. of office floorspace, c.2 million sq. ft. of education and innovation floorspace, c.2,500 hotel rooms and c.11,700 Purpose Built Student Accommodation (PBSA).
There were two new office starts in 2024, which is consistent with the level seen each year since 2020. Both new starts - 35 Newhall Street and the Tea Factory at Typhoo Wharf, are refurbishments and reinforce the increasing trend towards ‘renew not new’ within the office sector.
In the wake of the 2022 Commonwealth Games, Birmingham and the wider West Midlands has been building its legacy.
With the public sector already investing in ‘Brand Birmingham’, the private sector is now investing in facilities, sporting excellence and growth. Notable developments include Knighthead Capital’s investment into Birmingham City Football Club and its acquisition of 48 acres of land in Bordesley Green to deliver a new sports quarter and stadium, and Edgbaston Cricket Club’s planning application for the latest development of its masterplan, which will include a new stand and 4* hotel.
“The decision to expand the boundary of this year’s survey is indicative of Birmingham’s ambitious plans and mirrors the city’s ambition for future growth,” added Davidson.
“Residential remains strong, but looking forward, the pipeline across all sectors is positive. Although funding construction is becoming increasingly difficult, HS2 and the start of Curzon Street station is driving developer and investor confidence in the region.
“This coupled with the legacy of the Commonwealth Games and growing impetus behind ‘Brand Birmingham’ as a sporting and cultural destination, will hopefully kickstart an uptick of schemes breaking ground in 2025.”
