Residential pipeline sets new record for Birmingham
“2023 was a phenomenal year” for Birmingham construction activity according to Deloitte’s Crane Survey, with the city’s residential pipeline setting a new record.
Whilst the number of homes coming onto the market dipped by 20% from 2022 record levels, there’s 8,848 homes currently under construction across 31 schemes with 11 new starts.
The Jewellery Quarter saw the highest number of residential completions at 558 homes. Tracking slightly behind, the Gun Quarter delivered 420 homes, and Eastside 375 homes. Southside saw the most construction activity in the residential sector in 2023 with 2,743 homes under construction.
With 20 new starts across 19 schemes, residential led the way with 11 schemes, five office developments, three new student accommodation schemes and one in the healthcare sector.
Additionally, 20 residential schemes have been granted planning permission in the survey area but have not yet started.
Birmingham also witnessed its skyline change for the second consecutive year as One Eastside started on site. Topping out at 51 storeys once complete, it will surpass Octagon’s 49 storeys.
Zoe Davidson, a partner at Deloitte Midlands and real asset advisory lead, said: “Residential development in Birmingham continues to grow at pace both within the boundaries of the survey and further afield.
“Investor confidence in the sector remains high which is reflected in the strong pipeline. Birmingham City Council’s plans to expand the city centre boundaries with its ‘Our Future City Framework’, which is currently in consultation, will see the number of homes coming to market increase significantly over the coming years.
“The Build to Rent sector in particular is strong which is reflected in this year’s survey. During 2023, sixty-one percent of residential units delivered were Build to Rent, which represents sixty-three percent of homes under construction.”
In the office market, 591,134 sq ft of floorspace completed across three schemes in the City Core and Westside – John Cadbury House, One Centenary Way and 10 Brindleyplace. It’s over four times the previous year with 785,981 sq ft underway across nine schemes.
New office stars more than doubled in 2023, with Three Chamberlain Square is set to contribute a further 189,000 sq. ft. of office floorspace to the market and will be the first net-zero carbon development within the Paradise Masterplan.
The Crane Survey also revealed an uptick in student residential and education, and healthcare sector activity during 2023.
Three student residential developments began on site, which together will deliver 1,562 student beds within the City Core and Gun Quarter.
Meanwhile, in the City Core, construction began in late 2023 on a major redevelopment of Birmingham Children’s Hospital to deliver 47,511 sq ft of improved healthcare facilities.
For the fifth consecutive year, there were no new retail-led schemes.
Zoe Davidson, added: “2023 was a phenomenal year for Birmingham against a backdrop of economic uncertainty both at a national and local level, and a need to live up to the expectations set by the success of the Commonwealth Games.
“The legacy plan is in place and whilst attracting investment is a marathon not a sprint, the planning pipeline for core sectors is strong both within and outside of the survey’s boundaries.
“Birmingham City Council’s framework is anticipated to redefine the city’s core geographical boundaries which will incorporate major developments not currently recorded in the survey.
“Looking forward, 2024 could be another record-breaking year for the city although we are yet to see the full impact of those headwinds steering the economy.”
