Deloitte - Regional Crane Surveys

Deloitte Regional Crane Surveys: New construction starts up, but volume under construction decreases

Deloitte’s Regional Crane Surveys recorded a mixed picture in 2025, with an overall increase in the number of new starts across its four cities, but a decrease in the number of units and floorspace under construction.

The crane surveys monitor construction activity in the central areas of Belfast, Birmingham, Leeds, and Manchester.

In 2025, the four cities saw increased levels of new construction starts compared with the previous survey, with 53 new schemes vs. 47 in 2024 (and 63 in 2023). However, this did not equate to an increase in the volume of units and floorspace under construction, because of the smaller scale of some new starts – particularly across the residential sector.

Of the 53 new starts, 27 were in the residential sector (up four from the previous year), seven were offices - with a focus on refurbishments – eight were student housing schemes, and five were hotels. There was one new start in retail / leisure and one in education.

Across the residential sector, 21,057 units were under construction, with 8,885 units completions. This represents a decrease from 23,673 units and 9,075 completions the previous year.

Looking to offices, 2m sq. ft. of office space was under construction in 2025, down from 2.8m sq. ft. in 2024, with 1.7m sq. ft. delivered to market in 2025. The hotel sector saw an uptick in rooms under construction (2,564 vs. 1,680), though completions were down (584 vs. 652).

John Cooper, infrastructure and real estate partner at Deloitte, said: “In 2025, the construction sector had to navigate several challenges including complex economics, with higher costs and new building regulations such as the Building Safety Act contributing to deliverability challenges. 

“However, we have seen the impact of strategic public and private sector investment and collaboration, supplemented by developer sentiment shifting from cautious optimism to committed construction in a number of cases. Our research indicates a resilient pipeline, with healthy forward-looking activity across the student accommodation and hotel sectors and a more positive outlook into 2026 across the offices and residential sectors.

“Continued focus on strategic investment, timely decision making and labour force skills to support construction delivery is key to catalysing the opportunities that exists across these cities.”

Exploring the key cities, the crane surveys monitor construction activity in:

Belfast

There were five new starts in Belfast, the same number as in 2024. There was 219,000 sq. ft. of floor space under construction in the city, a rise compared to last survey’s figure (144,000), though no new offices were completed in 2025.

New starts in the city were driven by the education sector, which recorded three new schemes, compared to zero in the previous survey. Of these, two are leading edge R&D developments – the Institute of Research Excellence for Advanced Clinical Healthcare and Momentum One Zero.

There was a rise in the number of hotel rooms under construction, 531 in 2025 compared to 330 in 2024, and one new start, though again there were no completions. 1,224 student bedspaces remained under construction and are due for delivery in 2026.

Birmingham

In the Midlands, Birmingham recorded 23 new starts on site in 2025, a substantial increase from 11 in 2024 and the highest number in five years. This surge in activity has led to 40 developments currently under construction across the city centre.

This was mainly driven by a significant uplift in residential new starts. 17 schemes broke ground in 2025, up from six in the last survey. The city now has 6,822 residential units under construction, a slight reduction from last year despite those increased new starts. 4,594 units completed in 2025, a rise from 3,180, and a record high for the Birmingham Crane survey.

Elsewhere in the city, there were two new office starts, the same as last survey. There was 477,223 sq. ft. of office floorspace completed across six schemes, with a further 733,912 sq. ft. under construction across five schemes - predominantly through major refurbishments which represent 73%. 

There was one new student housing development, one new hotel, and one new start in retail/leisure.

Leeds

In West Yorkshire, while Leeds saw a slight dip in new starts, with eight in 2025 compared to 11 in 2024, the volume of new development across the residential sector has increased by 12%, with a rise of 84% in student accommodation.

Student housing schemes accounted for half (four) of these new starts. In 2025, 1,914 student bedspaces completed, a rise from 1,622 in 2024, which is the third highest completion figure since Leeds Crane Survey records began in 2006. Over 1,400 student beds spaces remain under construction.

There were three new residential starts, down from five in 2024. However, the number of units under construction is higher now than in the previous survey (5,970 vs. 4,185) and is also a record high. 909 units were completed in 2025.

36,000 sq. ft. of office space was delivered to market, down on the 404,012 sq. ft. in 2024. However, 260,531 sq. ft. remains under construction, all located in the City Core and Southbank.

Manchester

While the overall number of new starts dipped in Manchester (17 in 2025 vs. 20 in 2024) there were strong signs across the sectors.

Looking to student housing, there were three new starts, up from one in our previous survey, and there was a rise in student bedspaces under construction (3,894 vs. 2,687), the highest volume on record despite the highest delivery to market in 2025 (1,803 bedspaces). 

In the hotel sector, 1,621 rooms were under construction (vs. 1,181 in 2024) and 391 were completed. There were three new starts, up from one.

In terms of office space, three new starts broke ground (down from six), but 1.2m sq. ft commercial office space was delivered in Manchester and Salford in 2025, the highest since 2008 (1.4m sq. ft.). Refurbishments accounted for a 68% share of Manchester's office pipeline, up from 30% a decade ago.

Zoe Davidson, infrastructure and real estate partner at Deloitte, said: “While challenges remain in the commercial real estate sector including increased capital costs and construction inflation, the market is responding strategically. Our survey shows a clear focus on high-quality refurbishment of offices, with strong take up of the best quality office space. We would expect headline rental levels to rise in 2026, which may help to unlock further office schemes.

“Elsewhere, cities are responding to the challenges of providing quality bedspaces for their student population and young professionals, while a focus on culture and the visitor economy has underpinned new hotel and retail and leisure schemes.”

-Ends-

Notes to editors

About the Deloitte Crane Survey series: The crane survey is the definitive review of construction in a city region and is seen as a barometer of developer sentiment and future supply. Deloitte also publishes the London Office Crane Survey and has data going back to 1996.

Published 03 February 2026 are Belfast (first published 2017); Birmingham (first published 2002); Leeds (first published 2006); and Manchester (first published 1999).

Each report measures the volume of development taking place across that city centre and its impact. Property types include office, retail, leisure, residential, student accommodation, education and hotels. The reports include insight from developers building new schemes or undertaking significant refurbishment of the following:

(size minimum)

Office: +25,000 sq. ft.

Hotels: +35 beds

Retail and leisure: +10,000 sq. ft.

Residential: 25 homes

Education: +10,000 sq. ft.

The reports are compiled by Deloitte’s in-house real estate teams who have monitored construction across the cities. Deloitte’s field research is then verified with direct industry links and in-house property experts. The data capture period for these crane surveys covers the 12 months of 2025.

Number of new starts in 2025 by sector

Number of new starts in 2024 by sector 

*Some schemes are mixed use and cover a number of sectors in one development e.g. hotel and student accommodation.  

Number of new starts in 2023 by sector 

*Some schemes are mixed use and cover a number of sectors in one development e.g. hotel and student accommodation.  

Number of new starts in 2022 by sector 

Office - volume of floorspace under construction per survey (sq. ft.) 

Residential – number of units under construction per survey  

Student Housing – number of bedspaces under construction per survey  

Hotels – number of rooms under construction per survey