We recently had an insightful conversation with the Head of Investment to explore why she considers Birmingham a prime investment location. Here's what she shared:
Proximity to London
One of the foremost reasons to consider investing in Birmingham is its proximity to London. Even without the High-Speed 2 (HS2) rail project, Birmingham remains well-connected to the capital. With flexible work arrangements becoming more common, it's feasible for professionals to live in Birmingham, commute to London, enjoy a London salary, and benefit from Birmingham's more affordable housing prices.
Affordable Housing
Birmingham offers significantly more affordable housing compared to London, with house prices being about 74% cheaper. This affordability extends to daily expenses and overall lifestyle costs, making Birmingham an attractive option for both individuals and businesses looking to reduce expenses without sacrificing quality of life.
Community and Lifestyle
Birmingham is a smaller city compared to London, which fosters a strong community feel. The city is highly walkable and commutable by cycling or walking, contributing to a more relaxed and accessible lifestyle. This aspect appeals to those who prefer a more intimate and connected living environment.
Investment Potential and Undersupply
Birmingham is currently a few years behind Manchester in terms of investment and development. This lag presents an opportunity for growth and value appreciation. The city's housing stock has only increased by 22,806 units since 2011, falling short of its needs by about 50% over the past nine years. This undersupply, combined with economic growth, has driven house prices up by 68% in the past decade. Projections indicate a 33% increase by 2035, yet Birmingham's house prices remain significantly more affordable than London's.
Economic and Population Growth
Birmingham's population has grown by 19% since 2000, now standing at 1.1 million in 2023, with an additional 11% growth forecast by 2040. The city's economy has doubled in size since 2000, reaching over GBP 37.9 billion in 2023. This growth is expected to continue, with GDP projected to increase by another 92% by 2040. This economic expansion is accompanied by rising individual wealth, with GDP per capita up 70% since 2000 and expected to rise by another 74% by 2040.
Job Opportunities and Corporate Relocations
Many large companies have relocated their back-office operations to Birmingham due to its affordability. This shift has significantly increased job opportunities in the city. As government and local authorities continue to emphasize investment and regeneration, more companies are likely to follow suit. Birmingham's affordable office spaces and labour costs make it an attractive destination for businesses looking to optimize their operations.
In conclusion, Birmingham presents a compelling case for investment, driven by its strategic location, affordable housing, strong community feel, and significant growth potential in both housing and economic sectors. For these reasons, the Head of Investment strongly advocates for considering Birmingham as a prime investment location.
We thank her for sharing her insights and shedding light on why Birmingham stands out as a promising investment destination.
