Dating back to the 12th century in the historic county of the West Midlands, Birmingham has evolved significantly, playing a pivotal role in Britain's industrial revolution, earning its reputation as the UK’s Second City. Today, Birmingham thrives with a youthful, highly educated workforce and a diversified economic foundation, setting a strong stage for future growth. Forbes recognised Birmingham as the second-best city in the UK for new business start-ups in 2020, underscoring its vibrant entrepreneurial spirit and economic vitality. Fueled by promising career opportunities and a vibrant urban atmosphere, Birmingham has seen its working-age population surge by 20% over the past two decades, nearly double the national average. Explore the prime investment areas and hidden gems within Birmingham that are capturing the attention of both buy-to-let investors and renters alike.
Why Invest in Buy-to-let Birmingham Property?
As the UK’s second-largest city and a key business hub, Birmingham is witnessing robust economic growth that’s driving up property values. The city’s prestigious universities, including the University of Birmingham, along with a dynamic job market, ensure a steady demand for rental housing from both students and professionals. The combination of a growing population, more affordable property prices relative to London, and high demand makes Birmingham an attractive option for investors seeking strong rental yields.
Birmingham Investment Property Capital Growth
Zoopla reports that Birmingham's property market is thriving, with an average price of £244,288 over the past 12 months, making it significantly more affordable than London by 186%. The city offers lucrative investment opportunities, with prime areas boasting rental yields of approximately 6% and rents rising by 12.2% year-on-year. Birmingham's blend of attractive property prices, robust economic growth, high rental yields, and steady rental demand creates a fertile ground for investors aiming to maximise capital appreciation.
JEWELLERY QUARTER (B18)
If you're drawn to authenticity and rich history, the Jewellery Quarter in Birmingham should be on your radar for buy-to-let investments. English Heritage regards this area as 'a national treasure,' with a legacy spanning over 250 years when it first became a hub for jewellers. The area has also become a magnet for the arts, media, and creative industries, alongside a robust professional services sector, which has fostered a vibrant food and beverage scene.
The forthcoming St. Paul’s Quarter development, a GBP125 million project, will significantly enhance the area with nearly 100,000 sq. ft of commercial, retail, and leisure space, positioned between the lively Jewellery Quarter and the city centre. This restoration initiative aims to introduce 305 new homes and additional mixed-use spaces across 20 buildings, all while preserving the urban texture and historic allure of this heritage site.
For those seeking prime investment opportunities in Birmingham, the Jewellery Quarter offers a compelling blend of tradition and modernity.
Who lives there?
The area is home to Birmingham’s last remaining Georgian square and lovingly restored town houses. Expect to see established professionals who appreciate the old school charm of beautiful refurbishments, attracted by the eclectic food and beverage scene with an urban village feel.
Take a look at our recently completed development, Bishton Fletcher Building, in the Jewellery Quarter.
What are the best investments for buy-to-let in Birmingham’s Jewellery Quarter?
The Jewellery Quarter, with a history spanning over two centuries, boasts more than 200 listed buildings and stands as the epicentre of the UK’s jewellery industry. Renowned for producing more diamond rings, ornaments, and love tokens than any other location in the country, it accounts for approximately 40% of all UK jewellery production. This area seamlessly blends historic allure with modern advancements, creating a vibrant community celebrated for its rich cultural heritage, flourishing creative sectors, and exceptional amenities. The Jewellery Quarter attracts young professionals and creatives in search of stylish and well-situated rental properties. Prime investment opportunities here include contemporary newly-built apartments, tastefully renovated historic structures offering unique living experiences, and properties situated near key transport links. These attributes contribute to strong rental demand and substantial potential for capital appreciation.
DIGBETH (B5)
Birmingham presents some of the most promising property investment opportunities, especially with the ongoing regeneration of its East Side.
Digbeth, known for its street art and red-brick architecture, is frequently compared to London’s vibrant Shoreditch district. Its strategic location attracts a diverse mix of hipsters, creatives, and discerning business professionals. Just a 10-minute walk from the city centre, Digbeth’s popularity is rising, driven by enhanced transport links, positioning it as one of the premier investment areas in Birmingham.
At the heart of Digbeth’s real estate landscape is ‘The Custard Factory,’ a refurbished industrial site that now hosts 101 creative enterprises, art galleries, cafés, and dance studios, serving as a focal point for the area’s dynamic and growing community.
Who lives there?
Its convenient location is a huge draw-in for trendy creatives and savvy businessmen alike. Just 10 minutes on foot from the city centre, the area is estimated to explode in popularity as transport routes improve efficiency.
What are the best investments for buy-to-let in Digbeth?
Digbeth, once the industrial heart of Birmingham, has transformed into a lively creative hub, boasting an array of unique shops, bars, and restaurants. Named 'Britain's coolest neighbourhood' by The Sunday Times, its proximity to Bullring & Grand Central and frequent events make it perfect for young professionals. Notable investment opportunities include modern flats in new developments like Smithfield Birmingham and stylish warehouse conversions. These properties offer both contemporary and distinctive living spaces, making Digbeth a prime location for property investors seeking high returns in a vibrant urban setting.
CHINESE QUARTER
With a landmark pagoda at its heart, this fresh and vibrant quarter is a hive of restaurants, cafés, street food and some of Birmingham’s hippest nightspots. It lies within the city centre’s Southside; an area that has benefitted hugely from rejuvenation over the last few years.
With Birmingham Old Rep Theatre, Royal Ballet, the O2 Academy and Birmingham Hippodrome all within easy reach, it is certainly a key cultural hub for the city.
Who lives there?
Birmingham’s Chinese Quarter boasts a vibrant, multicultural community, significantly influenced by its large Chinese population. This diverse demographic enriches the area with a distinctive cultural essence, showcased through a plethora of Chinese-owned businesses, authentic restaurants, and lively cultural events. The neighbourhood’s proximity to major universities makes it an attractive option for both international and local students in search of convenient and cost-effective accommodation. Additionally, its central location and excellent transport links make it a preferred choice for young professionals working in the city centre.
What are the best investments for buy-to-let in Birmingham’s Chinese Quarter?
Situated between Grand Central Station and the Gay Village, Birmingham's Chinese Quarter is a bustling hub known for its unique and vibrant atmosphere. With an array of restaurants, shops, and entertainment venues, this area attracts both tourists and students, making it a strategic investment choice. Its prime city centre location ensures high rental demand, while its rich cultural scene, diverse culinary offerings, and proximity to major landmarks such as the Bullring and New Street Station enhance its appeal. Prime investment opportunities include modern flats in new developments, as well as high-quality studio and one-bedroom apartments ideal for young professionals and students, promising strong rental yields and significant capital appreciation potential as the area's popularity continues to grow.
EASTSIDE (B7)
Eastside's Curzon Park is set to become the hub of the new High Speed Rail terminus, significantly boosting the area's appeal. The development is expected to be a game-changer for property investment in Birmingham’s Eastside. Enhanced connectivity will drive demand for residential, commercial, and retail spaces, increasing property values and presenting lucrative opportunities for investors. Additionally, the GBP450 million 'Eastside Locks' canal regeneration project aims to create 16,000 new jobs and offer mixed-use floor space across 13 acres of prime Digbeth real estate.
Curzon Park, along with nearby City Park Gate, hosts impressive mixed-use developments. Birmingham City University’s Birmingham Institute of Art & Design also adds to the area’s dynamic appeal, attracting a vibrant community and further cementing Eastside as a top investment hotspot.
Who lives there?
Eastside is poised to become one of Birmingham's premier investment areas, particularly for those prioritising inter-city connectivity. Adding to its appeal, the GBP11.75 million City Park, Birmingham's newest urban green space, makes Eastside an attractive destination for young families seeking a vibrant, family-friendly environment.
What are the best investments for buy-to-let in Birmingham’s Eastside?
The Eastside area boasts the Eastside City Park, Birmingham's first new city centre park in 130 years. This expansive green space sets a high benchmark for urban public areas in an international city and stands as the largest public area in Birmingham's city centre. The park creates a green corridor that seamlessly links the city centre with the East End. Investing in Birmingham's Eastside is particularly enticing due to the area's extensive regeneration and the enhancement provided by Eastside City Park, which significantly boosts the area's appeal and livability. As a major hub for education and innovation, Eastside draws a substantial number of students and professionals, notably from the nearby Birmingham City University. Prime investment opportunities in the area include modern flats in new developments and residential projects catering to students.
GUN QUARTER (B4)
Located just north of the city centre, this historic area once stood as a global hub for gun manufacturing. Though the industry has since almost entirely moved on, the district continues to thrive with small-scale engineering and commerce. In August 2011, Birmingham City Council proposed renaming the Gun Quarter to 'St George and St Chad's Quarter.' This decision stirred the local public, leading the Birmingham Post to report on the controversy and prompting over 4,500 residents to sign a petition against the name change.
Who lives there?
The Gun Quarter boasts a vibrant and eclectic mix of residents. Its strategic location, offering easy access to the city centre and key employment zones, has made it a magnet for young professionals and students from nearby institutions like Birmingham City University and Aston University. The area's appeal is further enhanced by Birmingham's flourishing creative and tech industries, attracting individuals who appreciate its distinctive character and progressive infrastructure. Additionally, the Gun Quarter is home to long-standing residents who have been integral to its community throughout its ongoing redevelopment.
What are the best investments for buy-to-let in Birmingham’s Gun Quarter?
The Gun Quarter has been the centre of the world's gun manufacturing industry for many years, specialising in military and sporting firearms. Today, only a few gun manufacturers and traders remain here, mostly working for the airsoft sporting trade. The district's most magnificent attraction is St Chad's Cathedral, the first Catholic church built in 1841 since the Reformation in 16th century England. The Gun Quarter has a rich industrial heritage, which is currently being transformed into a fashionable residential area. It is popular with young professionals and students due to its proximity to key landmarks such as the city centre and Snow Hill Station. Investing in modern flats in new developments and stylish refurbishments of historic buildings is an unmissable option.
WESTSIDE (B1)
Westside features beautifully restored Victorian commercial buildings that blend seamlessly with innovative new residential and business complexes. A standout example is Paradise Square, a meticulously planned development featuring ten buildings dedicated to commercial, civic, retail, leisure, and hotel spaces. Among the area's established landmarks is the esteemed Queen’s College Chambers Building. Originally constructed in 1828 to house medical students, its magnificent facade remains intact, now fronting some of the city’s most sought-after apartments.
The area’s canalside, Brindley Place, is a magnet for city dwellers. This vibrant area offers an array of dining options, live comedy and music venues, and hosts events like the Dragonboat and film festivals, epitomising the essence of waterside urban living.
Who Lives There?
In addition to various professionals, it's not uncommon to encounter Premiership footballers in the area. When one of the prestigious Queen’s College Chambers penthouses was available, it sparked a bidding war between players from Aston Villa and West Brom, highlighting the strong demand for prime properties in this coveted location.
What are the best investments for buy-to-let in Birmingham’s Westside?
Birmingham's Westside is a dynamic area that offers an exceptional blend of nightlife, dining, and cultural attractions, making it a prime location for property investment. The Broad St nightclub district and Brindley Place's restaurants along the canal are standout features. The area also hosts attractions like the National Sealife Centre and Number 9 The Gallery, near the ICC and Symphony Hall. The Mailbox provides upscale shopping and office space for media companies like the BBC, BRMB, Galaxy, Heart FM, and ITV Central.
Westside's diverse entertainment, commercial, and residential offerings make it a lucrative investment opportunity. High-demand properties include modern and luxury flats in prestigious developments, particularly appealing to professionals and executives. This ensures strong rental demand, high yields, and significant capital growth potential as Westside continues to develop as a prime urban location in Birmingham for investment.
Birmingham vs London Property Investment Opportunities
Property investment in London is significantly different from property investment in Birmingham. London is known for its high property prices and fierce competition, with lower rental yields despite strong capital appreciation. In contrast, Birmingham offers more affordable entry points and robust rental yields due to its growing economy, major redevelopment projects and increasing population. Birmingham investors can benefit from lower purchase prices, diversified tenant bases and great potential for rental income and capital growth, which proves that impressive returns are not unique in London.
Find Out More
How does Birmingham stack up against other top cities worldwide for buy-to-let property investments? Speak with IP Global today to find the ideal property investment opportunity to match your portfolio.
Why Choose IP Global for Your Buy-to-Let Investments in Birmingham?
At IP Global, we have a track record of investing over USD 3 billion across 18 countries, gaining the expertise to offer you the smoothest end-to-end investment experience. We understand that property investment can be daunting, so we strive to make it better for you by providing comprehensive support and in-depth market insights. Visit our Why Invest With Us page to learn more about how we can assist you in making your investment journey as smooth and successful as possible.