Place-making: Fuelling Birmingham's rooted future

The power of place in creating communities

The residential sector continues to be the predominate contributor to Birmingham’s construction activity, contributing 17 of the 23 new starts in the city, up from six new starts in 2024. There is a slight reduction in the overall total number of units under construction, taking into account completions during 2025, given the small scale of a number of those new starts. In response to demand and market pressures, the sector is diversifying. Build-to-Rent (BTR) schemes continue to dominate, accounting for 55% of homes under construction this year. Meanwhile, the city’s first co-living scheme is under construction, Cordia’s The Bradford Works. Central East and specifically Digbeth are seeing the highest concentration of homes under construction of which 1,109 are for sale and 1,551 for rent.

Digbeth, in particular, demonstrates the importance of place-making in driving development. It’s distinct identity, blending industrial heritage with a burgeoning creative scene, appears to have attracted significant investment. This year, there are three new starts in the area, which alongside the other four schemes already under construction, will deliver nearly 3,500 new homes:

• Upper Trinity Street, a new start by Cole Waterhouse delivering 943 residential units, aims to reflect and enhance Digbeth’s character. It utilises canal heritage elements, incorporating an in-situ lock-keepers cottage, canal pump house, and culvert into the new Pump House Park, alongside a hotel and a mix of ground-floor commercial and retail uses, creating a vibrant destination in itself.
• The Stone Yard by Moda is another new start, having unlocked critical funding and will also infill a long-standing empty gap in Digbeth’s urban fabric. It will deliver a 30 storey tower and 995 homes, alongside retail and leisure.
• Smithfield House by Prosperity Investments and Developments Limited, will deliver 687 residential units over 23 storeys, along with over 22,000 sq. ft. of retail.

The pipeline is also robust, with a further 19 schemes either with planning permission and/or with the site cleared, that could deliver another 10,400 homes, signalling a strong future wave of development. Notable permissions granted in 2025 include:

• Phoenix Yard was granted planning permission at the end of 2025. This £100 million mixed-use scheme offers a curated mix of creative studios, education spaces, and social areas, delivering 255 homes and 260,000 sq. ft of office space tailored for Digbeth’s creative and media industries, building on the area’s legacy as a hub for creativity, learning, and media.
• The Oval Estate's Digbeth masterplan gained hybrid planning permission in late 2024, setting the stage for the delivery of 1,850 homes, student accommodation, nightclubs, retail, leisure and office, public realm and the sky park.
• The Birmingham Smithfield Masterplan, having received planning permission, is poised to become another gateway site for Digbeth. It draws on heritage, both below-ground archaeology and its historic role as a market, to shape its urban form and incorporate public spaces designed for future community engagement.

What is driving Digbeth’s renewal? The public sector has been instrumental in recognising the potential of investing in place-making and in turn multiplying return investment in Digbeth – both through the publication of growth-focused frameworks and direct funding, as discussed in analysis 1. The Digbeth prospectus, announced in May 2025, further outlines the public sector's role in unlocking funding and the importance of place-making to create vibrant neighbourhoods. The Bond and the BBC’s Typhoo Tea Factory were supported by Enterprise Zone and Local Growth funding, whilst key opportunity sites have Enterprise Zone status allowing business rates to be retained and reinvested. Since 2019, the Council has invested £50 million for public realm improvements and active travel connections. The now completed tram link (albeit not yet connected) on Bordesley High Street is a commitment to greater connectivity for this area on completion of HS2. This strategic investment in infrastructure and public spaces has been crucial for Digbeth’s transformation, where over the coming years, long derelict buildings, and brownfield land will transform into thriving communities.

Digbeth’s embedded mix of retail, leisure, and nightlife contributes to its appeal, making it an attractive location for businesses and residents alike. Through strategic positioning and leveraging its local identity, enhanced by its historic built form and industrial roots, Digbeth is growing as a hub for the creative and media industries. Now home to Digbeth Loc Studios, and soon to be home to the BBC, it also recently welcomed Production Central WM, which aims to grow the regional screen economy.  The pipeline of new office floorspace in Digbeth is looking strong too:

• Phoenix Yard is looking to bring forward 260,000 sq. ft. of commercial space for the creative and media industries.
• Beorma Quarter currently under construction will deliver 152,000 sq. ft. of Grade A space at the gateway to Digbeth.

A mix of complementary uses is key to building long-term economic resilience through diverse business ecosystems and attracting talent who seek vibrant, adaptable urban spaces. Contributing to Digbeth’s ecosystem, we are also seeing a significant quantum of retail and leisure floorspace being brought forward, with 63,000 sq. ft. at Upper Trinity Street and 30,000 sq. ft. at The Stone Yard, both new starts in this year’s survey. Although these are residential-led schemes, it is refreshing to see flexible retail and leisure being brought forward in larger formats. In Digbeth, the significant uptick in residential and office construction appears to have created a growing community that has reached a 'critical mass', enabling investor confidence in viable retail and leisure provision. The Birmingham Economic Review 2025 highlights that between Q1 2023 and Q1 2024, restaurants and hotels experienced significant increases in consumer spending which is a positive sign for this sector in the city, although notably the uptick has not yet met pre-pandemic levels.

In Central West, we have seen two new starts at Icknield Port Loop, a large masterplan for the regeneration of a 43-acre canal-side industrial site to create a new thriving neighbourhood in Centre West. With Keon Homes starting stalled construction on Phase 3 this year and Places for People starting construction on Phases 11 and 12, a total of 290 new homes will be delivered, with a large proportion of these as affordable housing. This adds to the 98 homes completed this year in Phase 2. Leveraging the historic canal infrastructure to create waterside communities, with the added benefit of canals providing pedestrian mobility, amenity and access to nature, Icknield Port Loop is catalysing further development in the area, with surrounding areas likely to experience an uplift in land and asset values. The former Tower Ballroom site, Icknield Square, and other sites on Icknield Port Road could bring forward c.600 additional homes. Icknield Port Loop further exemplifies how a place-making vision, driven by the public sector, can catalyse additional investment.

Housing alone does not create community; mixed-use schemes and areas foster holistic environments where people can work, reside, and enjoy their time. The retail and leisure sector has seen one new retail/leisure-led start in 2025, the refurbishment of Moseley Baths. Whilst in the culture and community sector (not measured in our survey), Tubeworks by Civic Square at Icknield Port Loop progressed. These schemes are deeply rooted in place-making, through the provision of uses complementary to and serving local communities.

Brand Birmingham: Creating vibrant destinations

A thriving cultural and visitor economy is integral to successful place-making, drawing people to live, work, and enjoy the city. The Jewellery Quarter's 'World Craft City' status, alongside cities like Jaipur and Kyoto, and popular cultural phenomena such as Peaky Blinders and Black Sabbath, have positioned Birmingham globally. The Birmingham Economic Review 2025 notes that Ozzy Osbourne drew global attention to Birmingham's musical legacy, with his final concert generating an estimated £33.8 million in gross output, £27.6 million of which was retained in the West Midlands.

The city's rich musical heritage plays a crucial role in its identity and appeal. Ozzy Osbourne's recent passing profoundly united the city, reiterating the importance of celebrating its musical culture. This cultural resonance, and its associated historic assets, can be a powerful tool for place-making. In the built environment, this could lead to the adaptive reuse of historic buildings, the creation of new cultural venues and attractions, and developments that enhance the city's cultural infrastructure, making it a compelling destination. 'Brand Birmingham' is not just about global recognition but also about preserving and enhancing local identity and celebrating history.

The West Midlands welcomed 101.5 million visitors in 2024, six million more than during the 2022 Commonwealth Games, with a record £14 billion spent – a 7% increase. This robust performance underscores the success of 'Brand Birmingham' efforts, directly contributing to the revival of the hotel sector and overall visitor economy. Forthcoming major sporting events, including the European Athletics Championships in 2026 and UEFA Euro 2028, will further enhance the city's profile and position it to challenge other leading UK destinations.

After two consecutive years of no new starts, the hotel sector has reached a turning point, directly validating 'Brand Birmingham' efforts and the city's success in leveraging sport and culture to attract investment. In 2025, three schemes are under construction, delivering 412 hotel bedspaces: one hotel-led and two mixed-use developments. The integration of hotels into mixed-use schemes suggests a strategic approach to balance viability and profitability by diversifying revenue streams. The hotel-led new start, the Murdoch and Pitman Chambers, was directly enabled by WMCA public sector funding. Looking ahead, Edgbaston Cricket Ground's hotel (also WMCA part-funded) is likely to be a new start next year, bringing a 4* Radisson RED hotel to Edgbaston. This will serve over 60,000 annual visitors ahead of the Men’s Ashes series in summer 2027.

The Deloitte European Hotel Industry and Investment Survey 2025 indicates Birmingham's growing appeal, moving up three places to become the fifth most attractive UK city for regional hotel investment in 2025. Concurrently, the wider region's hotel occupancy levels grew by 2% year-on-year, surpassed only by 4% growth in the Southwest, while all other regions saw a decline. This improved ranking, coupled with increased visitor numbers, suggests that the "cautious optimism" predicted in last year’s survey is converting into committed construction. The pipeline of over 1,300 hotel beds with planning permission predominantly in the City Heart and Central South areas, indicates further growth potential.

Beyond celebrating its past and enhancing existing attractions, Birmingham must continue to strive 'forward' with ambition. Significant investment in cultural infrastructure and sustained competitiveness on the global stage to secure major events will be crucial for attracting growing visitor numbers, fostering continued growth in the hospitality sector, and ensuring its long-term viability.

Significant projects are on the horizon across Birmingham which promise to deliver this forward ambition by harnessing the power of the city’s brand. Knighthead’s The Sports Quarter, for instance, unveiled a visionary 62,000-seater new home stadium for the Blues, anchoring a comprehensive regeneration of brownfield land in East Birmingham. Designed by leading architects Heatherwick and Manica in collaboration with Stephen Knight, this stadium will host top-league football matches and be capable of staging other globally significant events across sports, music and culture.

This substantial American investment, extending beyond the city centre, is testament to the established strength of 'Brand Birmingham' in attracting FDI. Knighthead has strategically recognised and is actively leveraging the city's existing global appeal, including the passionate fanbase of Birmingham City Football Club and the international profile of figures like Tom Brady, to anchor this ambitious development. Delivering the Sports Quarter's will not only result in significant local regeneration but is also poised to significantly elevate Birmingham's profile on the world stage, positioning it as a premier destination for major international sports, music, and cultural events.

Future outlook: Rooting success in place

A clear pattern emerges from this year’s results - places fostering a strong sense of identity, community and connectivity are attracting investment and driving construction activity. This is particularly evident in Digbeth, which is seeing significant construction activity, with much more in the pipeline.

The power of place-based regeneration has the potential to strengthen Birmingham’s brand, better connecting local people with new opportunities and supporting social mobility. The collaboration between public and private sectors, leveraging cultural assets and strategic funding, has been essential in delivering vibrant places where people want to live, work, visit and play.

The success seen in areas like Digbeth and Icknield Port Loop, driven by strategic public sector investment and a clear vision for mixed-use, community-focused development, provides a blueprint for future regeneration across the city. As 'Brand Birmingham' continues to attract global attention through major sporting and cultural events, and significant FDI projects like Knighthead's Sports Quarter, the demand for high-quality, authentic places will only intensify. The ongoing challenge will be to replicate these successes, ensuring that new developments are deeply rooted in local identity, foster genuine community, and provide the diverse amenities that attract and retain talent and investment, thereby securing Birmingham’s future as a thriving, well-connected city.