Investment in Birmingham – follow the dragon for off-plan profit potential

Billions in investment points the way for investors in new build residential

Birmingham. The city whose economy is growing faster than the whole of France. The city with more canals than Venice. The youngest city in Europe. All of this is true. It’s also a city offering huge promise for off-plan property investment.

The UK’s second largest city, Birmingham has an enormous economic output of £23 billion. It’s the regional capital of the Midlands and its economic powerhouse. Birmingham is a mecca for shoppers and has the highest number of Michelin-starred restaurants in the UK outside of London. The city is a centre of culture, boasting its symphony orchestra, a royal ballet, and leading art galleries and theatres. And families benefit from education establishments that produce results above the national average. The 2017 annual Quality of Living Survey (conducted by Mercer) ranks Birmingham as the third best place to live in the UK after London and Edinburgh. Visitor numbers to Birmingham have doubled in the last three years.

For investors in new build, Birmingham’s transport links place it firmly in the list of the best places to invest in property UK. 90% of the nation’s population is within four hours’ drive, making it an ideal centre for business. The already exceptional connectivity will be improved further with HS2. Journey times to London by rail will be slashed from 80 minutes to less than 50 minutes. It will provide options for inward and outward commuting, as well as improve the movement of goods. Birmingham Airport currently provides an access and exit point for 25 million passengers each year. It’s the seventh busiest airport in the UK, with plans to expand capacity to 50 million passengers by 2050.

In this article, you’ll learn about the massive investment that is taking place in Birmingham. An investment that will support property investment here for decades, and provides the exciting potential for off-plan property in Birmingham. You’ll discover a fantastic Taylor Wimpey development, which promises incredible investment potential.

One of Europe’s best places for investment

Birmingham is the best place for investment in the UK, and the sixth best in Europe. It is the conclusion of the ‘Emerging Trends in Real Estate 2016’ report by the Urban Land Institute and PwC. The fundamentals that underpin this analysis include:

• Birmingham’s population is growing strongly – increasing by 9.5% between 2005 and 2016, and forecast to continue this rate of growth.
• It’s the youngest city in Europe – 50% of the city’s population is under 30 years of age.
• The potential for above-average residential new build investment property returns – young people flocking into the city needs somewhere to live as well as work.
• Investment in transport infrastructure – giving Birmingham a considerable boost.
• HS2 will deliver improved connectivity – slashing journey times to London and then to Leeds and Manchester.
• Birmingham Airport’s expansion – already adding more international routes thanks to a runway extension, and with further investment and expansion plan.

To realise its potential, Birmingham is investing and receiving inward investment. Offices are being upgraded to reflect the needs of businesses in the modern world. Changing lifestyles and technology have driven a huge shift in what businesses, workers and residents expect from workplaces and homes.

Developers and the City Council, among others, are rising to the challenge. The pipeline for new office space in Birmingham is the highest it has been for more than a decade. There are almost a million square feet under construction, according to a 2016 Deloitte Real Estate Crane Survey.

Investment begins in Birmingham city centre

The city centre is, of course, a key growth point, and is established as the region’s economic engine. It is the focal point for significant investment in offices, retail, and new homes. Birmingham city centre is the largest Enterprise Zone in the UK. In total, 26 growth sites have been identified as appropriate for growth in the City Centre Enterprise Zone. Investment here will concentrate on current economic excellence in financial and insurance services, ICT, creative, and digital media sectors.

In the city centre, where investment has already begun, Birmingham will benefit from:

• 1.3 million square metres of new floor space for business and retail
• 40,000 new private sector jobs
• An increase of £70 million in additional business rates

… but isn’t confined to it

Key sites for investment and growth away from the city centre include:

• Greater Icknield – a strategically significant site to the west of the city centre, which will be developed to provide a sustainable neighbourhood of 3,000 new homes.
• Aston, Newtown and Lozells – the adopted Area Action Plan (AAP) proposes a 20 ha Regional Investment Site, over 700 new homes and new office and retail development, including the growth of Perry Barr District Centre.
• Sutton Coldfield Town Centre – significant growth and diversification of the town centre to improve the current limited retail and leisure offer.
• Bordesley Park – the AAP (once adopted) will deliver 750 new homes, enhanced connectivity, an improved environment, and new employment generating activity.
• Eastern Triangle – regeneration and growth of around 1,000 new homes and improvements to local centres focused on the Meadway, Stechford and Shard End.
• Selly Oak and South Edgbaston – major regeneration and investment opportunity including the growth of the District Centre, 700 new homes and a new Life Sciences campus.
• Longbridge – the adopted AAP proposes significant levels of growth including a Regional Investment Site, 1,450 new homes, a new local centre and other employment sites.

Billions more are flooding in

Already, billions of pounds have been invested in regeneration projects in Birmingham, and billions more are being committed or encouraged. Projects to date include:

• The Southern Gateway, a 22-hectare site in the heart of the city. It is a £1 billion project that delivers leisure, retail, food markets, and commercial and residential space.
• £600 million invested in the redevelopment of New Street station.
• £400 million (to date) on the expansion of Birmingham Airport.
• Birmingham Smithfield is a £500 million masterplan to deliver 1,000 new homes, new public spaces, a new Midland Metro tram line, and a new cycle and pedestrian routes.
• The regeneration of the area around the planned Curzon Street station is a £900 million project that will lead to the creation of 4,000 new homes, retail, office and commercial opportunities.

However, even though these projects are worth billions, this investment is dwarfed by investment that is currently being courted and committed for the future:

In September 2016, Chinese property development company Country Garden signed an agreement with Birmingham City Council, which could be worth £2 billion. During a trade mission to China and Hong Kong, Council leader Councillor John Clancy signed a Joint Statement of Investment Commitment with the developer. The agreement states that the Chinese company will:

• Explore large-scale investment opportunities in Birmingham city region and focus on regeneration and investment options related to the HS2 project.
• Work jointly to find areas of collaboration about delivering significant new housing stock in Birmingham city and the surrounding area.

In a first for a British local authority, Birmingham City Council sent a trade mission to Qatar in January 2017 to seek up to £5 billion in investment funding for the city. In a three-day visit to the Gulf – which John Clancy said was a direct response to the EU Referendum result – the delegation discussed the massive infrastructure planned for the city, including new homes. The Birmingham city delegation was supported by British officials and embassy staff.

New build residential development is supported by huge investment in Birmingham’s business, infrastructure, and transport. Your investment profits could be energized when you buy off-plan in Birmingham. A rapidly growing population desired new build homes, close to work and play in Birmingham.

Taylor Wimpey – building an oasis in Birmingham’s ‘Kensington’

Highfield Gardens from Taylor Wimpey is less than two miles from the vibrant Brindley Place, with its restaurants, bars and culture. It is secluded in an area which is considered Birmingham’s equivalent of London’s Kensington. It is near to the Edgbaston campus of the University of Birmingham, and you’ll find several excellent schools within walking distance. There are pubs, restaurants and sports clubs nearby.

Two railway stations serve the area, and the A38 makes light work for those who prefer travelling by road.

Highfield Gardens is a development of 36 one and two-bedroom apartments spread across two buildings, and seven four-bedroom townhouses. The development is ideally located for those who work in Birmingham city centre, and for those who want to benefit from the city’s excellent nightlife.

The properties for sale here ooze elegance and quality. Nothing less than you would expect from a property developer which has won eight NHBC Pride in the Job awards, three Seals of Excellence and one Regional Award in 2015 alone.

Contact one of the Gladfish team today on +44 (0)207 923 6100 – discover more about the amazing property investment opportunities in Birmingham, and be kept informed of off-plan and new build property investment opportunities in Birmingham as they get the green light.

Live with passion,

Brett Alegre-Wood