BIRMINGHAM PROPERTY INVESTMENT

• PwC's Most Investable City in the UK (2022)

• 298k people educated to degree level – more than any other core city

• Located in the UK’s fastest-growing tech sector

Receive the latest insights and research on the Birmingham real estate market by downloading the investment case below.

BIRMINGHAM: INVESTMENT IN THE UK’S SECOND CITY

As the UK’s second-largest city and one of the most affordable locations to buy property, there are favourable grounds for property investment in Birmingham.

Set to welcome over 76,200 new residents by 2040, housing demand is growing. House prices in Birmingham are forecast to rise by an accumulated 17.5% over the next five years. Coupled with a strong demand for rentals as an affordable alternative to living in London, Birmingham property investment is an attractive choice for buy-to-let investors.

Expanding beyond its industrial success as the ‘first manufacturing town in the world’ in 1791, Birmingham is now an economic powerhouse. Many global firms have set up regional offices in the city, bringing in new career opportunities. Start-ups are also in abundance as innovators make Birmingham their home. Because of this, Forbes ranked Birmingham as the 2nd best city in the UK for business start-ups.

BIRMINGHAM PROPERTY INVESTMENT IN A SNAPSHOT

Population

Birmingham’s working population has increased by 23% since 2000, registering 1.15 million residents as of 2023, and is forecast to reach more than 1.2 million (+4.5%) inhabitants by 2035.

Housing market

Birmingham's house prices increased by 80% over the past 10 years. The city expects to see a further 35% growth in house prices over the next few years to 2035.

Economy

Birmingham’s economy has grown by 131% since the year 2000, totalling GBP37.6 billion as of 2023. The economy is expected to expand by a further 53% to reach GBP57.4 billion by 2035.

FIVE REASONS TO MAKE A PROPERTY INVESTMENT IN BIRMINGHAM

Birmingham is a promising destination for both local and global property investors seeking a diverse range of investment opportunities in residential, and commercial properties.

The city has demonstrated a sustained demand for new developments, driven in part by the growing population.

Ongoing regeneration projects are the result of the subsequent increase in wealth and economic growth. Birmingham's property investment outlook for future growth remains robust, with projections of continued inward investment further driving demand for properties in this thriving metropolis.

Rapid Economic Growth

Birmingham has grown from a city of manufacturers into one of the innovators. The city’s rapid increase in start-up businesses has substantially contributed to its capital growth. Birmingham boasts a proven track record in the UK's top startup hubs, holding the #1 spot for 7 years straight in 2020, and remaining within the top 5 since.

A large number of international firms have chosen Birmingham as a base for major offices and even headquarters. With the city’s economic success and a pool of educated young professionals needing jobs, Birmingham provides the ideal environment for large-scale investments. Since 2000, the economy has grown by 122% and is expected to grow by a further 63% by 2035.

High Graduate Retention Rate

Birmingham’s investment has been bolstered by five universities producing 25,000 new graduates every year. 49% of graduates choose to remain in the city after graduation, making use of alumni connections and the vast range of job opportunities that the city provides.

As a result, Birmingham has a large population of young professionals. 30% of the city’s population is under 25, supporting the city’s healthy rental market. The high demand also adds to the local economy as major companies make use of the population of educated and talented graduates, developing new offices to accommodate them.

Growing Demand For Housing

Due to the surge of economic growth over the past decades, Birmingham’s population has increased as a result. It is estimated that there are an average of 6,194 new residents per annum, providing a consistently high demand for housing.

The city sees an undersupply of housing and cannot meet the growing demand. As a result, house prices have grown by 80% over the last decade. However, housing in Birmingham is still 34% more affordable than the UK average, making it an attractive option for buy-to-let investors looking for pockets of value.

Due to the burgeoning population of young professionals, the demand for rentals continues to grow. The average rent increased by 15% over the last five years and is expected to grow by a further 19%. Buy-to-let investments will see a strong ROI in the future, especially with Birmingham’s regeneration plans on the horizon.

Improved Transport Links

The introduction of the HS2 high-speed railway line, due to open between 2029 and 2033, will soon shorten the distance between Birmingham and London.

The new transport link will shorten the travel time from 1 hour and 10 minutes via train to 45 minutes. The shorter train journey promises to inject a significant boost to tourism, commerce and property investment in Birmingham as the commuter belt widens.

Injection of Interest from The Commonwealth Games

Host to the 2022 Commonwealth Games, Birmingham has been in the spotlight around the world. Birmingham welcomed over one million spectators during the event, which was broadcast across the globe. GBP778 million was invested into the city to host the games propelling economic growth -creating 35,000 new jobs, a vast amount of tourism, and additional capital through tickets, sponsorships and merchandising.

See Our Birmingham Properties

Off-Plan Property Investment in Birmingham

Birmingham's property market continues to see exciting developments. But how do you secure the best units with the highest potential returns?Consider investing in off-plan properties. Purchasing a property off-plan, which means buying it before it's built or completed, offers several benefits. Here are some of the key advantages:

Prioritized Selection

Secure the most desirable units before they hit the market. Choose the ideal layout, perfect views, or prime amenities that perfectly align with your investment goals.

Potential Price Advantage

Off-plan properties are typically offered at a lower price point compared to completed units. This translates to immediate equity upon completion and the potential for higher rental yields.

Phased Investment Approach

Mitigate upfront costs with flexible payment plans. Many developers offer deposits or installments tied to key construction milestones, making Birmingham property investment more accessible.

IP Global goes beyond by providing a comprehensive Investment Returns Model tailored to each off-plan property. This model forecasts potential returns at different stages of construction, helping you make informed decisions.

Uncertain about off-plan investing? Our blog, "5 Essential Questions to Ask When Buying Property Off-Plan for the First Time," provides expert advice to navigate this process with confidence.

A great place to live and work: Birmingham’s buy-to-let potential

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. […]

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Why choose IP Global for Birmingham Investment

Our Experience

We have been trading for approximately two decades and have built a robust track record in Birmingham. As a result, our experts have the full skill set to guide you through all the complexities of international real estate while delivering strong returns. Since 2015 we have secured 7 unique developments in Birmingham across a range of areas. The total investment value exceeds USD103 million, with many investors experiencing double digits in capital growth in as little as two to three years since launch. Our lettings and management experts have achieved an actual vs. forecasted rental estimate of 113%, highlighting the robust rental market in Birmingham.

Our Expertise

Our team of people know their markets inside and out. Property investment advisors, researchers, marketers, consultants, analysts, account managers, quantity surveyors – every single one is experienced, knowledgeable, reliable, and passionate about property.

Our team of Wealth Managers across the world are our direct link to our investors. They listen carefully to our investors’ needs and stay up to date with our markets and the properties within them. Their success is based on their ability to develop strong and lasting relationships built on trust and credibility, and repeatedly deliver opportunities that meet the investment requirements of our clients.

Our End-To-End Service

From sourcing, financing and acquisition to ongoing management and resale, we pride ourselves on making real estate investment an easily manageable and highly profitable aspect of your portfolio.

Research

Every IP Global opportunity comes backed by the assurance of a methodically
researched investment case, one that is strong enough to convince our Investment team that we should make our own financial commitment. Our comprehensive analysis and due diligence process involves researching the market, the developers, the area and the financials.

Consultancy

Our specialist team of consultants is our most direct link to you, our investors. Each of these investment professionals has a deep understanding of every one of our opportunities and an up-to-date appreciation of all the markets in which we operate. With a focus on building close, long-term relationships, they’ll offer carefully considered advice and guidance tailored to fit your specific investment goals.

Full Support

Once you’ve decided to make an investment through us, our Client Services team will work closely with you to keep things running as smoothly as possible. They will help you through the purchase and payment process, keeping you up-to-date with the development’s construction and the local market.

Mortgages

Leveraging greatly increases the potential returns your investment can achieve. Given our commitment to helping investors make the very most of their capital, a vital part of our end-to-end proposition is our capacity to connect you with mortgage financing on the best terms available for your situation, wherever in the world you are and wherever you’re investing.

Lettings Management

One of the most difficult and time-consuming aspects of owning an international real estate portfolio is the ongoing management of your investments. Tenanting, maintenance and legal obligations; investing through IP Global means all of this can be covered because of the end-to-end commitments we make to you.

Resales

Deciding on the best time to cash in on your investment can take a lot of work for the individual investor, who would need to be constantly up-to-date with the local market and their properties place within it. Our preferred partners can advise you on the best time to put your property on the market and realise your investment, whichever market you're in, with a wide variety of sales channels to support you

Frequently Asked Questions About Birmingham Property Investment

Which Global Businesses Have Their Headquarters In Birmingham?

Many businesses have opted to choose Birmingham as the location for head offices. The most notable firms that have regional offices in the city are:

HSBC
PwC
KPMG
BT
Rolls-Royce
Jaguar Land Rover

What Is A Good Rental Yield In Birmingham?

According to Complete Prime Residential, our preferred lettings and management partner in Birmingham, the average rental yield attained across their portfolio of over 150 properties was 4.77% in 2023. As property prices are still low compared to London, Birmingham’s average yields are high in comparison.

Given the rental market has remained consistently high over the past decade, the city offers a reliable ROI on buy-to-let Birmingham investments.

It's important to note, however, that the average rental yield does not take into account individual areas, tenancy agreement types (short-term vs long-term lets) and property size. It is important to consider the rental yield according to comparable properties in the vicinity before making any buy-to-let purchase.

Our experts can talk to you about rental yields in Birmingham and the city’s rental market in general, and provide detailed guides. Please don’t hesitate to get in touch to request more information.

How Do Birmingham’s Rental Prices Compare To The Rest Of The UK?

Compared to London, Birmingham’s rental prices are considerably more affordable, making a Birmingham investment more appealing. The average rental price for a one-bed property is GBP1,052 pcm. In London, the same type of property averages at GBP2,705 pcm.

Birmingham’s rental prices are predicted to rise by an accumulated 25.2% over the next five years.

Will Birmingham house prices rise?

Birmingham’s house prices are expected to rise by an accumulated 17.5% by 2028. The 2022 Commonwealth Games brought the city international success and is a driving force for general interest around the globe. With business booming and the demand for housing continually rising, the city’s economy and infrastructure are healthy and look promising for future property investments in Birmingham.

Where Is A Good Place For Birmingham Property Investment?

There are great opportunities for Birmingham property investment. Locations such as Digbeth see interest from investors due to significant regeneration projects in the vicinity, offering pockets of value very close to the city centre. Other areas such as The Jewellery Quarter offer a slice of history with a multitude of tastefully restored Grade II Listed Buildings frequently in demand, further boasting Birmingham’s investment.

Learn More About What Birmingham has to Offer Investors

Our ‘Cities in Focus: Birmingham’ guide shows the growth in the city over the past decade. Take a look at some of the key initiatives catapulting regeneration and attracting high profile brands to the UK’s Second City.