Should you follow the billions of pounds being invested in Birmingham’s remodelling?
With the population expected to grow by more than 15% in the next two decades and the local economy booming, serious property investors are buying in Birmingham for its potential to produce above-average rental yield and capital growth. Investors here are also benefitting from the billions being invested in the regeneration of Birmingham, with infrastructure, commercial, retail and residential all benefitting. Here’s a taste of this massive investment.
A big city with big plans
In 2010, Birmingham published its Big City Plan, setting out what it planned to do to regenerate the city and attract new businesses, grow its economy, and attract new people into the area. It’s an innovative, imaginative, and ambitious plan. And it hasn’t disappointed.
The Big City Plan envisions that 500,000 jobs will be created between 2010 and 2030. Already we’ve seen evidence that such an ambitious number could be achievable. Many global companies have relocated their headquarters here. One of the largest of these relocations was the £265 million purchase of Brindleyplace by HSBC, moving its HQ from London to Birmingham. Deutsche Bank, too, relocated hundreds of jobs from the capital to the UK’s second city.
Huge investment in infrastructure
Infrastructure investment includes the multi-billion-pound High-Speed Rail that is due to start its services by 2026. When trains do start running, London will be less than an hour away. This will make daily commuting between the two cities a real possibility.
While High-Speed Rail makes most of the national headlines, it’s worth mentioning just how much money is being invested in regeneration that is changing the face of Birmingham:
- Birmingham New Street station is benefitting from a £550 million renovation
- Grand Central is now a luxury retail destination
- The £700 million investment in Paradise Birmingham will create a link between Colmore Road and Arena Central and Brindleyplace
- The £500 million redevelopments of Smithfield
- The £1 billion regeneration of Longbridge
- The £1.2 billion regeneration of the east side of the city centre, where the new HS2 station at Curzon will be
Arena Central is where you’ll find HSBC and the new relocated HMRC regional headquarters. This is a huge mixed-use regeneration project, providing more than a million square feet of office, retail and commercial space.
Paradise Birmingham is creating almost 2 million square feet of office, retail and leisure space. This will provide a gateway between the city centre and the Westside district, at a cost of around £700 million. PwC will be based here, and by the time the project is completed in 2026, there will also be a 250-bedroom hotel.
In a 10-year transformation costing £500 million, Birmingham Smithfield, 14 hectares of prime city centre land – between the city centre, Eastside, and Chinese quarter – will deliver new offices, retail and leisure space. It is anticipated that 1,000 new homes will be delivered, along with 3,000 new jobs. Once completed, this huge regeneration project will also include new music venues, art galleries and museums.
HS2 in the Eastside
An article highlighting the massive regeneration helping to reshape Birmingham would not be complete without mention of the impact that HS2 will have on the Eastside. Curzon Street station will be the first new intercity station built for more than 100 years, with seven platforms connecting to Digbeth, New Street station, and the city centre, via a new West Midlands Metro tram line. There will be cycle paths, taxi and bus connections to the wider city area.
It is expected that the redevelopment of Curzon Street will lead to more than £1 billion of regeneration to the Eastside. Huge. Simply huge.