The findings are out from Deloitte’s Leeds Crane Survey 2025, and it paints a picture of strength and adaptability in the city.
Despite economic challenges, Leeds has remained resilient. According to the latest Leeds Crane Survey, 11 new projects commenced construction across all sectors last year. While this is below the average of 14 – and demonstrates a third consecutive year of decline – there’s still lots of positive being driven from residential developments and current projects.
Residential developments remain robust
Out of the 11 new projects last year, a massive 72% of them were residential or student housing. Five are residential schemes, which keeps pace with the 5.5 Crane Survey average, with 2024 delivering 1,500 new homes and 4,185 units being under construction.
Student accommodation is one of the strongest areas, with three new schemes and approximately 1,622 beds completed last year. The growth of residential and student accommodation reflects the ongoing demands for purpose-built central accommodation for both professionals and from the city’s large international student population.
Office builds experience a slowdown
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While residential developments are booming, office space is declining in the city. Only two new office schemes broke ground in 2024, which is below the 2.8 average of new starts across the last five years. All the new office space that’s currently under construction is concentrated in the South Bank and City Core.
However, this slowdown isn’t unique to Leeds. Economic uncertainty and changes in the needs of occupiers has led to a national trend of fewer new office developments. The survey notes that this is not a reflection of a decline in Leeds but rather a time of revision in how the city’s professional spaces look, with increased need for coworking and collaborative environments.
Retail space could be reimagined in the city
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Similar to offices, Leeds’ retail space also has the potential to be recalibrated and reimagined. In 2024, 82,103 square feet of leisure and retail space was completed in the city, suggesting resurgence in the sector could be on the horizon.
Rather than simply focusing on driving more square footage, the survey indicates that retail spaces could be changing. Successes such as the flagship Flannels store on Briggate, along with pop-up shopping events that were held in City Square, could be the beginning of a more experience-focused shopping experience in Leeds.
A city that’s embracing opportunity, change and sustainability
Overall, the 2025 survey shows that Leeds is a city with inherent strength, adaptability and an ability to navigate challenges. While new office space may be declining, the city is seeing existing workplaces being adapted. Examples like Bruntwood’s recent West Village refurbishment show that the need for communal and co-working environments are being met outside of new developments.
There’s also been an increase in the number of start-ups and innovation-driving businesses being attracted to the city. Competitive rents and a deep talent pool in the city are drawing in large institutions, like the Financial Conduct Authority.
Along with health tech and fin tech, green sector businesses are also a notable area of growth. Sustainability remains a key commitment for Leeds, with more and more new developments incorporating net-zero plans from the concept phase.
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