The Commonwealth Games have been making headlines in the city of Birmingham for the past few weeks, but behind the scenes property investors are increasingly turning their attention to the Midlands hotspot.
Just days after the closing ceremony announced the end of the star-studded Commonwealth Games, where Australia won the most medals but were closely followed by England, there is still a buzz around town Birmingham host. The preparation for the Games was long and the aftermath will be just as lasting.
Birmingham has been attracting property investment interest from afar for a number of years now, with many investors reaping big rewards from strong rental yields, reliable capital appreciation and a wave of regeneration bringing more people to the city .
Below are five reasons why Birmingham remains a favorite among investors.
1. Commonwealth Games
It’s no secret that millions of pounds of public money have been poured into Birmingham ahead of the Games. This paid for infrastructure and transport improvements, the transformation of the Alexander Stadium and a slew of new developments to enable the city to host the event.
With any remaining money from the Commonwealth Games budget, the council presented four legacy proposals for Birmingham. This includes investment in grassroots football and culture, a project focused on special families, a new science and industry museum and a bid to host the 2026 European Athletics Championships.
2. HS2 – Hard Shell
According to Andy Street, Mayor of the West Midlands, the arrival of HS2 in Solihull will make the area “the best investment opportunity in the UK”. He cites 140 hectares of regeneration, 27,000 jobs, 3,000 homes and 6 million square feet of commercial space.
“Arden Cross could be quite amazing, and it’s fantastic to see the plans develop after putting £45m on the table,” he added on Twitter. Many real estate investors with long-term aspirations are investing in the area, ready for the arrival of HS2, which should see a major influx of interest.
Property expert Jonathan Rolande said: “Rising house prices in the North will create a decade of opportunity and investors will be looking for the pot of gold at the end of the HS2 line.”
3. BBC in Birmingham
Employment is a surefire way to attract investors, homeowners, and renters to an area. This is why the BBC’s arrival in Digbeth is so eagerly awaited by many, as not only will it itself become a major employer, but it will likely be the catalyst for more big business to move into the area in full boom.
Digbeth’s new creative district will house the BBC’s new broadcast centre, with the team currently based at The Mailbox. The relocation is expected to take place from 2026 and will see the relocation of programs like MasterChef and Newsbeat.
4. House prices
House prices in Birmingham could soar by up to 15%, according to estate agency Barrows and Forrester. This is based on similar historic increases in house prices following past Commonwealth Games, all of which have seen house prices rise by an average of 14.9% thereafter.
Whether or not these predictions materialize, one of Birmingham’s main draws is its relatively affordable price compared to London and much of the south east of the country. Savills says house prices in the Midlands city are almost a third of those in the capital, meaning more options for investors.
Many of the points mentioned above have caused a regeneration snowball effect in Birmingham, creating a more pleasant place to live and work, leading to a strong housing and rental market. Big companies like Goldman Sachs and HSBC have already established themselves there, for example.
There are also major redevelopment projects underway, such as a £1.9billion regeneration of the Smithfield town center site by Lendlease, which will bring new homes and a festival square with cafes and a market .
The Birmingham Big City plan has also targeted new developments as well as major infrastructure improvements, which greatly enhances the attractiveness of the city as a property investment target.
BuyAssociation has a range of property investment opportunities available in and around Birmingham. Contact us for more information.