Where the canals powered the region’s industrial might through the 18^th century, today a new transport revolution is taking place. HS2 is the most high-profile aspect of this, but there is an abundance of opportunity across the West Midlands which is being facilitated by other transport improvements. The Mayor’s growth strategy hinges on investment in local and national transport driving growth in jobs, housing and opportunity for all parts of the city.

The West Midlands Metro is expanding rapidly, with new lines under construction connecting the city centre, HS2 and major employment hubs in the Black Country, with further expansion proposed to Solihull and Birmingham International. Alongside the reopening of the Camp Hill train line through south Birmingham, these local network improvements will help unlock growth, connect communities and reduce reliance on cars across the whole urban area.

But the future isn’t just about rails. Transport for West Midlands is piloting automated buses, alongside electric fleets and Mobility-as-a-Service platforms. These innovations aim to serve areas beyond tram and train lines, offering flexible, low-carbon travel options that reduce congestion and improve reliability. As well as increasing road capacity, this pilot aims to help Birmingham’s automotive industry evolve, boosting demand for high-quality industrial space.

And the canals which sparked the economic success of the city historically are again at the centre of efforts to provide the homes, jobs and leisure opportunities to drive Birmingham forwards. The Canal & River Trust’s 10-year strategy is transforming these historic industrial arteries into centres of placemaking, supporting residential and leisure uses, alongside enhanced public spaces.

The WMCA clearly recognises the power which this infrastructure investment has to generate stronger economic growth across the West Midlands, and has been backed by a £24bn funding commitment from central government, announced in June 2025. To make the most of this investment, the land opportunities must be available across the West Midlands to attract investment, produce viable developments and create places of which the region can be proud.

Birmingham’s office market: a decade of transformation

Over the past decade, Birmingham has attracted a growing number of major office occupiers, including HSBC, Goldman Sachs and the BBC. This momentum has been underpinned by a significant upgrade in the city’s prime office offering, with landmark schemes such as Paradise, Snowhill, 103 Colmore Row and Arena Central delivering high‑quality Grade A space.

Rising headline rents illustrate the scale of this transformation. At Paradise Three Chamberlain Square the rent achieved has now reached £52 per sq ft. This places Birmingham at the top of the Big Six regional cities for prime headline rents. These increases reflect sustained demand for high‑quality offices in the city core, contrasting with almost zero new build supply and a very limited committed pipeline.

Recent leasing activity has been robust. Take‑up in 2025 totalled 703,430 sq ft across 100 transactions – 7% above the five‑year average for deal volumes – while overall take‑up was 2% above the five‑year average. Grade A and prime space dominated the year, accounting for 252,378 sq ft (40% of total take‑up) through 41 transactions, a level 35% above the five‑year average.

Professional services have led the market in 2025, securing 281,598 sq ft across 28 deals - the sector’s strongest year since 2008. Major transactions included EY’s 93,780 sq ft at Three Chamberlain Square and Deloitte taking 46,000 sq ft at One Centenary Way. In February 2026 solicitors Eversheds have also now committed to take 45,000 sq ft representing the final remaining space at Three Chamberlain Square. Over the past five years, public sector and education occupiers have also played a significant role, accounting for 29% of take‑up, with 2024 marking a standout year for the sector.

Affordability boosts the housing market outlook

The housing market in Birmingham has been relatively slow in the last year. House prices in the city have remained broadly flat in the year to September, against a West Midlands average of 2.1% growth, according to Land Registry data. Birmingham also lags behind other major cities over a longer time period – in the last 20 years, house prices have grown more slowly in Birmingham than in Manchester, Leeds, Bristol, Nottingham and Sheffield. Birmingham’s economy has also underperformed many other major cities over this period.

However, Birmingham holds a key advantage: affordability. The average home within the Birmingham local authority costs 6.6 times average earnings, compared with 7.7 times across England. This relative value positions Birmingham for future growth, particularly as improved connectivity via HS2 makes it increasingly feasible to maintain ties with London while living and working primarily in Birmingham.

Our forecast for the West Midlands points to 24.6% house price growth over the next five years, and Birmingham has the potential to outperform the region if its economy strengthens.

Challenges with development viability have caused urban land values to fall nationally, but in Birmingham, the market has been somewhat more robust. This suggests that demand in Birmingham remains strong, despite urban residential viability becoming increasingly difficult due to rising build costs.

Confidence can also be drawn from the large pipeline of development coming forward in the city. Housing delivery has increased markedly in the last two years, with 4,454 net additional homes delivered in Birmingham in the year to March 2025, roughly in line with the new standard method housing need. At a national level, housing delivery is likely to fall in the next year or so as a consequence of a drop off in planning consents, But with a strong pipeline of schemes under construction or in planning, including 14,000 build to rent homes alongside the private sale market, Birmingham can look to increase its housing delivery.

Evolution in the Logistics market

Birmingham’s strength as a logistics hub is underpinned by its central UK position and exceptional infrastructure, with immediate access to national transport corridors such as the M6 and the West Coast Main Line, placing much of the city within a zone that can reach 90% of the British population within a four‑hour drive. This connectivity has helped the Midlands increase its share of UK industrial take‑up from 26% to 42% over the past 15 years, now representing the largest proportion nationally, and reinforcing the region’s dominance as a logistics powerhouse.

However, land supply within Birmingham is extremely limited, at all scales but especially for larger industrial and logistics (I&L) schemes. Peddimore - the city’s final strategic‑scale site - has now been largely built out, with Phase 2 taken by Rockwool around 12 months ago. In 2025 there were no available units above 500,000 sq ft, and only two in the 400,000-500,000 sq ft range. Given Birmingham’s constrained boundary, the requirement for new strategic‑scale logistics capacity will need to be met in adjoining local authorities, something which is acknowledged by the latest West Midlands Strategic Employment Sites Study.

The shortage of land at all scales means that developers are increasingly focusing on recycling and upgrading existing industrial estates to align with occupiers’ rising ESG and operational requirements and provide modern floorspace. The role of well‑located secondary sites across the city in bolstering the supply of modern floorspace will continue to increase going forward, particularly those which offer excellent accessibility to the regional and national road network, a critical factor for I&L operators to ensure efficient access to markets, labour, and supply chains.

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