Why global experts believe Birmingham is the UK’s top property hotspot
The Emerging Trends in Real Estate 2017 report, produced by the Urban Land Institute and PwC, names Birmingham among Europe’s top hotspots for property investment, and number one in the UK. With so many great places to invest in the UK, this is a pretty sweeping conclusion to make. But they have certainly done their research. So why might these global experts have such confidence in the ability for investment property in Birmingham to produce market-beating returns?
Regeneration of property: Birmingham has massive plans
Birmingham’s regeneration has been an ongoing theme for decades. Most recently, projects have included:
- The Birmingham New Street station, which reopened in late 2015 after a £600 million upgrade
- The £150 million Resorts World Birmingham leisure scheme, which opened in Spring 2015
- Paradise, an ambitious regeneration project already bearing fruit
In September 2016, the Curzon Investment Plan was unveiled. It provides a £900 million commitment to regenerate the area around the planned HS2 Curzon Street station. Part of this project will deliver 4,000 new city centre homes.
It is a huge investment, but small in comparison to what is planned in the future.
In January 2017, Birmingham City Council adopted the Birmingham Development Plan (BDP) 2031. The BDP guides decisions on regeneration and will help the city deliver 51,000 new homes by 2031 to house the expected population growth of 150,000. Also, Birmingham City Council plans to deliver millions of square metres of new office and retail space.
The BDP incorporates the Big City Plan, which sets out strategies to revitalise swathes of brownfield and other available sites in and around Birmingham. It lays out the need to deliver transport infrastructure, which improves city centre connectivity, connects Birmingham’s communities, and delivers “strategic connectivity for regional and sub-regionally important locations”.
Birmingham is a centre for business
Birmingham’s big economic advantage is its geographic position. It has the largest concentration of business outside of London. Nine out of 10 UK businesses and people can be reached by road within four hours. Its economy is already growing at a faster rate than the UK average.
With the massive investment in the New Street Gateway, city centre Metro, and taking place in HS2 and Birmingham Airport, the city’s reputation as a location for international business will be enhanced. The potential for economic outperformance to continue is almost set in stone. HS2 is forecast to increase economic output by £4 billion per year after it is introduced.
A young and vibrant lifestyle city
Birmingham is home to the youngest population in Europe, with 40% under the age of 25 years. This age group desires a place to suit their lifestyle. Birmingham doesn’t disappoint:
- With a range of spectacular shopping centres, Birmingham is a paradise for retail enthusiasts
- It is a superb place to live with magnificent leisure and dining options
- It’s home to a superb nightlife
- There are dozens of museums and galleries
- There is no shortage of incredible open spaces and countryside
Affordability and rental yield
Many of the respondents to the Urban Land Institute and PwC survey highlight affordability as a factor in their decision to invest in Birmingham. London’s high prices have prompted property investors to look elsewhere for affordable property. Birmingham’s regeneration, appeal to business, and investment in infrastructure, combined with its relatively low entrance level, makes residential property in the city enticing, and the Birmingham region highly attractive as a sustainable investment destination.
With Birmingham’s average property price around 17% lower than the national average and an average rental yield above 6%, investors might be wise to invest in Birmingham’s status as the UK’s number one property hotspot in the Emerging Trends in Real Estate 2017 report. It is certainly high on the list of the best places to invest in property UK.
Discover more about the amazing new build and off-plan property available in Birmingham by contacting one of the Gladfish team on+44 (0)207 923 6100.
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