Research shows that Birmingham is one of the best places to invest in property in the UK today, and according to the ‘2018 Emerging Trends in Real Estates Europe’ report, it has been named at the most improved city.
Below outlines some of the reasons we believe you should be investing in property in Birmingham:
- Birmingham has the strongest local economy outside of London – This economy is growing at a huge pace, which means a huge number of new homes will be needed and it has been estimated that there will be 90,000 built by 2030. Birmingham’s economy has grown by 19% over the last 5 years, mainly due to the billions of pounds coming in from foreign investors because they are anticipating the positive effect that the new High-Speed rail HS2 will have on the region. Reports suggest that Birmingham’s, known as the UK’s second city, the economy will continue to grow at 1.5% every year through to 2021.
- Foreign investment is creating thousands of jobs – The Department for International Trade has recognised the West Midlands as one of the most attractive areas for foreign investments. Birmingham is UK’s second financial centre after London with businesses such as, Channel 4, HMRC, and HSBC who are relocating to the city. This will add a further 5,000 jobs to the local economy.
- The outstanding city for education – Birmingham schools has been rewarded more outstanding ratings than any other regional city in the UK. It also has the largest student population with businesses looking for highly educated people.
- A most popular location for people leaving London – Statistics show that Birmingham is the number one choice for those leaving London to live somewhere else in the UK, a lot being young professionals as the job market isn’t what it used to be in London. They are also struggling with the cost of living in the capital, which is where the buy-to-let investors are benefiting from.
- The destination for international visitors, business tourism and entrepreneurs – Visitor numbers are booming in Birmingham, with more than 11 million overseas visitors coming to the city every year. The city is more popular than Manchester, Edinburgh, and Leeds as a destination for business tourists. It also has the most entrepreneurial of all the UK’s regional cities.
- Infrastructure development – This includes the £600 million redevelopments of New Street and Grand Central, £500 million being invested in Smithfield Market, and also £500 million ploughed into Paradise Circus and Arena Central.
- High yields and capital growth – Property prices have increased in Birmingham around 5-7% in each of the last 5 years, with average selling prices from £140k in 2013 to £180k in 2018 which is a rise of around 28%. The average rental price in Birmingham is £950 per month with an average yield of 6.3% which is higher than the UK average yield of around 5%.
With businesses, central and local government investing heavily, along with huge infrastructure projects like the HS2, as an investor, the perfect time to invest in this city is now. At Opulence Invest, we have opportunities in Birmingham please contact us to find out more