Birmingham tops Manchester as construction hits five-year high
A residential-led property surge has pushed Birmingham to a five-year construction high in 2025, outpacing city rival Manchester on new starts, according to new data from Deloitte.
The firms 2026 Regional Crane Survey report showed a total of 23 new starts on major construction projects in the city, more than double the number in 2024, and the highest number for five years.
By contrast, Manchester saw just 17 new starts – the city’s lowest total since 2021.
Deloitte’s Regional Crane Surveys track construction activity across four UK cities and key sectors, including office, residential, hotels, retail, leisure, education and student housing. In total, 53 new schemes broke ground in 2025, up from 47 the previous year.
Birmingham’s resurgence has been led by residential builds, with all but six of the new projects started in 2025 housing schemes, with 4,594 homes completed in 2025 – the highest number of completed units recorded in the survey’s 24-year history.
A further 6,822 homes are currently under construction in the city, a fall of around 11% from the previous year, despite the record numbers of new starts.
In other sectors, PBSA saw 1,664 bedspaces under construction, with one new start – while in offices 477,223 sq ft of office floorspace was completed across six schemes, including high profile sites such as MBRE’s Three Chamberlain Square, in Paradise.
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.”
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 continued: “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.”
