5 Reasons To Invest In Birmingham Property
Birmingham is booming. In recent years, billions of pounds have been invested into commercial spaces, residential homes, retail outlets, and office spaces in this thriving city.
These prosperous developments are reflected in Birmingham property prices. Since the mid-90s, home prices have increased between 165%-328% (depending on the type of unit).
So the key question is: Will prices continue to rise?
The most likely answer is yes. Ongoing developments in Birmingham are predicted to drive property prices to never-seen-before levels.
Which means that investors who lay claim to a Birmingham property today, can reap really good returns in the near to mid future.
Here are 5 reasons why astute investors are clamoring to invest in a Birmingham property.
London has traditionally been the investment hub of the UK. Other cities like Birmingham have until recently, been left trailing in the wake of London’s rapid growth.
But due to the impending Brexit, investors are shifting a portion of their portfolio away from London in an attempt to diversify and mitigate risk.
Even though many experts have concluded that London still remains a viable place of investment (in spite of Brexit), the prudent course of action is to spread investment across multiple cities.
And with an economy of £28.1 billion, the strongest outside of London, investors are flocking in droves to the UK’s fastest-growing city.
The Commonwealth Games are one of the world’s premier sporting events. Held once every 4 years, Birmingham has beaten off stiff competition to host the next games in 2022.
This honor further enhanced Birmingham’s global appeal, and is set to shine further spotlight on a soon-to-be world class city.
It is expected that the games will generate £750 million to its economy, paving the way for further developments in infrastructure, business, housing and leisure.
This is good news for property investors, who can expect a sharp increase in the value of their homes.
Birmingham’s position at the very center of England makes it the most connected city in the UK. Major cities like Manchester and London are currently reachable within 4 hours or less by road, rail and air.
The completion of the High Speed 2 Network in 2026, a train route that reduces travel time even more, will make Birmingham more accessible than ever.
This plays a key role in Birmingham’s attraction as a business hub, fueling the city for a lifetime of economic success.
The High Speed 2 Network is expected to bring in an additional 50,000 jobs, further increasing the need for more housing. Good news for property investors!
Birmingham’s young and hungry workforce is the catalyst for the city’s emergence as a business hotspot. Since 2016, close to 18,000 new businesses started up in the city, 2nd only to London.
In fact, many Londoners are choosing to relocate to Birmingham instead. Last year, over 7,600 people make this very move.
And why not? Young professionals get to enjoy a lower cost of living in Birmingham, without compromising on employment opportunities.
This creates a perfect storm for tenant demand, which will greatly benefit owners of Birmingham property.
The average price of a Birmingham home is £207,517. This is around £20,000 less than Manchester, and around £280,000 less than London.
Due to reasons elaborated in the points above, Birmingham property prices still have plenty of room for growth.
As it stands, there is an undersupply of available homes to meet demand, which shows no sign of slowing. And when demand outstrips supply, prices tend to rise.
Little wonder that Birmingham property presents such promising investment opportunities!
Time is of the essence. Presently, Birmingham’s growth, while on the upswing, has not reached its peak yet.
For property investors, this is a window of opportunity to invest in Birmingham property at relatively low prices, with massive potential for capital appreciation in future.
So if you’re keen to find the right Birmingham investment property for you, drop your details below, and one of our Birmingham property experts will contact you to explain further.
Looking forward to share more about Birmingham property with you really soon!
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