Leeds remains resilient amid a tale of two sectors

The Deloitte Crane Survey is out, and Place Yorkshire has summarised the key takeaways from Leeds for your perusal.

With reports monitoring activity in Belfast, Birmingham, Leeds, and Manchester, overall there was a slowdown in activity across all cities, with inflated costs impacted by global economic headwinds cited as the main cause.

Highlights for Leeds show that in 2024:

• There were 11 new schemes in the city, down from the typical annual average of 14 and from last year’s total of 16, marking the lowest figure since 2013
• Of those projects, 72% were residential or PBSA
• Two offices and one hotel started construction
• In total, 26 sites were under construction and 19 completed.

Residential 

Residential development remains robust in Leeds, highlighted by the five new projects launched. This matches the Crane Survey average of 5.5 across the four cities surveyed.

There was a consistent delivery of 1,500 homes, with a record-breaking number of units set to complete in 2025 and 2026.

Of the 4,185 units being built, 72% are BTR

Meanwhile, on the PBSA front, three new schemes were launched and 1,622 beds completed in 2024.

Offices (including education/research)

Office development slowed down in 2024, with only two new developments starting construction – below the five-year average of 2.8.

While 2023 saw around 198,000 sq ft delivered, there were no completions in 2024. However, Leeds City College Mabgate Campus and the Arts University Extension, totalling 83,562 sq ft, remain under construction.

All of the new office space under construction is located along the South Bank and in the City Core.

Retail 

Retail picked up in Leeds in 2024, with 82,000 sq ft completed – namely, Flannels flagship store on Briggate.

Following on from no new hotel openings in 2022 and 2023, the completion of the 331-bed Sovereign Square Hyatt signalled a return to activity, although the pipeline looks slim for 2025 (80 rooms projected).

Cllr James Lewis, leader of Leeds City Council, commented: “Leeds continues to demonstrate its resilience and ambition even amidst a challenging economic backdrop.

“The latest Crane survey figures reflect the city’s ongoing commitment to inclusive and sustainable growth, with significant development and investment happening across the city.

The full report can be read here.