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Is Birmingham Good to Invest Right Now?
Birmingham is the second-largest city in the UK and provides a perfect opportunity to invest in property.
The city ranks as one of the best investment opportunities in Europe.
It has an economy of £24.8 billion, which is one of the strongest recorded outside of London.
Therefore, it may come as no surprise that global businesses such as HSBC, Deutsche Bank and PwC are relocating their headquarters to the city.
While the Covid-19 pandemic has certainly caused some damage to the region’s economic strength, Birmingham’s universal appeal hasn’t faltered to mega businesses.
Due to the rise in Birmingham’s profile, the city was announced as the new host for the 2022 Commonwealth Games.
As the largest sporting event for the UK since the 2012 London Olympics, Birmingham takes the limelight on a global stage, and as a result, an estimated £750 million will be generated to boost to its economy.
It is predicted that the Games will bring a boost to tourism in Birmingham, too.
Between 500,000 to one million additional visitors are expected to visit Birmingham over the 11-day sporting event.
This is why investment property for sale in Birmingham is a hot commodity in 2022.
Birmingham is the second-largest city in the UK and provides a perfect opportunity to invest in property. The city ranks as one of the best investment opportunities in Europe.Michael Gledhill, Director at RWinvest
Birmingham Property Investment
Europe’s Youngest City
Birmingham is one of the youngest cities in the entire UK in 2020.
The population has reached 2.6 million people in the urban area and 984,000 in the city area.
Of this number nearly 40% are under 25.
Home to five universities and over 80,000 students, the city is a hub for education.
Birmingham’s youthfulness and central location are two principal reasons why the city has created more businesses than anywhere else outside of the capital.
Most recent recorded statistics show Birmingham saw over 14,500 new businesses created throughout the city in 2019- making it the UK’s start-up capital outside London.
Project HS2, Europe’s largest infrastructure, worth £56 billion, is due to be introduced in 2026.
The high scale project is determined to diminish travel time from Birmingham and the capital to one hour, raising the accessibility to a plethora of jobs for city commuters.
The project will see massive growth for the area, with the Curzon Street Masterplan predicting the creation of 36,000 new jobs, 4,000 new homes, and 600,000 square metres of commercial development.
One of the Top Cities for House Price Growth
Development activity and strong incoming investment have resulted in Birmingham being a top destination for house price growth.
Savills industry-renowned five-year house price forecast has predicted the West Midlands will increase by 24.0% by 2025, which is higher than the national average.
Increased demands of city-centre living produce a faster rate of increasing house prices.
Average house prices across the city amount to an average affordable rate of £205,134 according to Rightmove.
With the average UK house price sitting at a record-high of £250,000 according to Halifax, Birmingham is far more affordable than other cities.
Birmingham is over £500,000 less than the average London property meaning the city still has immense scope for further growth.
There are also huge developments happening across the city centre and exciting new regeneration schemes on the outskirts.
Recently, areas such as Perry Barr and Ladywood have started regeneration projects ahead of the Commonwealth Games in 2022.
A Booming Student Market in Birmingham
With 80,000 students across five Birmingham universities, landlords should look to the city to secure the best investments.
The ideal target tenant market for landlords are ambitious students wanting housing or excited graduates choosing to reside in the city.
The turnover of students living in Birmingham and the lack of rentals means that landlords will always have a consistent demand for letting out their property.
Plus, with the fact that over 40% of students choose to stay living in the city post-study, there are plenty of eager residents looking for housing,
As the Universities in Birmingham climb the league tables, more prospective students are choosing the city for their studies.
Therefore, this is an ideal time for landlords to consider a fruitful investment in a prime city-centre location like Birmingham.
The future of Birmingham is bright and more vibrant than ever; choosing a Birmingham property to add to your UK property portfolio would enhance your knowledge.
Plus, the population surge means properties in Birmingham are sure to gain capital appreciation over the next decade.