Why You Should Invest In The Birmingham Property Market
As an investor looking for your next opportunity, you want to find a city poised for growth that will provide strong returns. Birmingham property investment offers an excellent means of building your investment portfolio, boasting strong rental yields and capital value appreciation in the long term.
Birmingham has a rich history as an industrial powerhouse, but today, it’s a modern city with a thriving economy, culture, and property market. The city centre has undergone widespread regeneration, attracting new residents and businesses. These growths and developments result in a booming property market, and if you don’t want to miss out, now is the time to invest in Birmingham.
£31 billion (2020 estimate)
Birmingham is currently undergoing an enormous transformation as part of their Big City Masterplan, creating huge opportunities for property investor.
Birmingham’s six economic growth zones framework will attract a £1.5 Billion investment programme, generating some 1.8 Million square metres of new floor space and creating around 50,000 new jobs.
By 2031, Birmingham will have undergone a transformational change that will see substantial economic growth, furthering its dynamic presence on the international stage. The six economic zones provide the stimulus for clustering economic activity within high-quality business environments, each accelerating the delivery of growth to benefit the city.
The forefront of Birmingham’s regeneration is to provide an exceptional standard of living with efficient transportation around the city. Birmingham will have more public squares, parks and pedestrian spaces, combined with its beautiful canal network, which is to be restored.
With more Michelin-starred restaurants than any other city in the UK other than London, as well as beautiful bars and cafes overlooking the water, Birmingham will soon provide a World Class standard of living that will be recognised globally.
Birmingham is behind the curve with its regeneration, presenting enormous opportunities for investors seeking healthy returns. The 20-year Big City Plan aims to improve transport connectivity, build 5,000 new homes and create 50,000 new jobs. The arrival of the HS2 link will also attract increasing numbers of Londoners to Birmingham, where property prices are much more competitive.
There are plenty of opportunities for new and veteran property investors in Birmingham. The city is well known as an affordable place to live for students, young professionals and families, but there are signs that this is changing.
Birmingham is experiencing unprecedented demand levels and a wave of new amenities due to a combination of new developments and Such inward investment has secured from the local government. This has secured Birmingham’s position as the most desirable alternative for those leaving London while attracting ambitious professionals from around the country.
Property prices in Birmingham are still relatively low compared to other regions. However rental yields for 2022 are averaging 6.56%, according to data from Zoopla. This is significantly higher than London at 2.90% and even the UK average.
According to JLL research, rental prices in Birmingham could increase by 12% over the next five years – the highest level of growth in the country.
Birmingham is strategically located for motorway travel, with the M5, M6, M40 and M42 all interconnecting in and around the city. Three main rail stations serve Birmingham: New Street, Snow Hill and Moor Street, providing a comprehensive network linking long-distance destinations across the UK.
Birmingham International is approximately twenty-five minutes drive from the development, enabling easy and convenient domestic and international air travel.
Popularly known as the UK’s Second City, Birmingham has a flourishing, diversified economy built on multiple sectors, including business, retail, tourism, and education. With significant infrastructure improvements over the past decade, buying property in Birmingham is a great investment decision.
Here are some key facts and stats on the city’s economy and infrastructure:
Birmingham exhibits exceptional real estate investment and growth potential with a powerhouse economy, modern infrastructure, top universities, and increasing property values. Hence, Birmingham should be at the top of the list for international and local investors seeking portfolio diversification and robust returns.
Birmingham has a high demand for rental properties and attractive yields for investors, and the following facts and figures further corroborate this:
With a long history of reasonable property prices and rental growth, a growing population and an economy, Birmingham is poised to remain a top investment location for buy-to-let properties in the coming years. The city presents an opportunity for investors to earn attractive returns from a robust and expanding rental market.
Birmingham property investment is increasingly attractive to many due to substantial price growth in the city’s real estate market over the last ten years — both in key property hotspots and up-and-coming areas.
Here are some important areas to consider buying property within Birmingham:
This is one of the city’s most desirable and fastest-growing areas. Once an industrial centre, it boasts trendy apartments, restaurants, bars and entertainment options. Property prices in the Jewelry Quarter have increased significantly in the last five years.
An inner-city area located just south of the city centre, the Digbeth region is poised for significant regeneration and development. Over the next decade, the £1.9 billion Smithfield redevelopment will transform Digbeth into a hub for creative and tech businesses. Savvy investors are snapping Digbeth properties before prices surge, with an expected growth of over 24% over the next 2–3 years.
Located just south of the city centre, this area is home to the new Birmingham Smithfield market and the £700 million Paradise Circus redevelopment. New apartments in Southside have seen asking prices increase in the last two years. The proximity to major employers like HSBC and KPMG also boosts rental demand, making Southside a great location to purchase buy-to-let properties in Birmingham.
Known for its leafy streets, attractive Victorian houses and proximity to the Edgbaston Cricket Ground, this region has long been one of Birmingham’s most prestigious locations. Property values in Edgbaston have risen by 12% in the last four years and are expected to continue increasing steadily over the coming decade due to strong local demand.
Birmingham’s accelerating growth, significant infrastructure improvements, and thriving business environment drive substantial property price increases, especially in well-located areas near the city centre. As a result, the city remains one of the UK’s top property hotspots for investors seeking capital growth and strong rental demand.
When considering the best types of properties to invest in Birmingham, buy-to-let properties offer solid returns, ranging across the following:
Apartments offer solid rental demand and returns in Birmingham. Newly built apartments near the city centre and universities are ideal, as they’ll attract long-term tenants with high rental rates. Apartments typically offer an impressive yield of around 5–8%.
Off-plan or pre-construction property can be an attractive option for investors seeking capital growth over income. Purchasing at a discount to the final market value and benefitting from price appreciation upon completion allows for significant equity gain.
HMOs, or houses converted into separate rental units, are an attractive investment in Birmingham due to strong demand from students and young professionals. Investors can expect high rental yields of 8–9% from HMOs.
“I have known Lewis Finn for many years now, and he’s been a huge part of the reason why SVN Capital has aligned so closely with API Global. The addition of James Harper has added further value to both our clients and to the team, whilst the sheer depth and diversity of their property portfolio provides us with top-quality investment solutions for our clients around the world. It’s very comforting to know that a great deal of due diligence has been done before bring a project online and, having seen many of the finished properties in the flesh, I can say that our confidence in API Global is well placed. We look forward to expanding our working relation further into the second half of 2023 and beyond.”
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Yes, buying property in Birmingham makes for a good investment. The city boasts a vibrant economy, rapid infrastructure development, and a growing population, which are fundamental indicators of a promising property market.
While no one can predict the future with 100% certainty, the current trends suggest that Birmingham house prices may continue to rise. The city’s ongoing development and growing demand for housing often contribute to property price growth.
Given the city’s ongoing developments and promising economic indicators, now is a good time to consider investing in Birmingham. We’d like to emphasise that the best investment decisions are often made with expert advice, which the API Global team can offer based on our research-led approach.
The property market in Birmingham is currently very dynamic and promising. The city is experiencing rapid growth and development, with significant investment in infrastructure and regeneration projects. This, coupled with a strong economy and a rising population, has increased housing demand.
The city’s property market is also witnessing a surge in rental demand, making it particularly attractive for buy-to-let investors. Rental yields are robust and are expected to strengthen further as the city continues to attract students, professionals, and families looking for a vibrant, well-connected place to live.
However, like any investment, it’s essential to do your homework and, ideally, consult with a property investment expert. They can provide updated information on the current market conditions and help identify the best investment opportunities in Birmingham.
API Global secure and package market-leading UK property investment solutions for our global partners. We deliver an end-to-end solution for investors.
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