• 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
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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, the Birmingham property market is a lucrative choice for investment and 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 of innovators to make Birmingham their home
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.
Property prices in Birmingham increased by 80% over the past 10 years. The city expects to see a further 35% growth in property prices in Birmingham over the next few years to 2035. This presents a perfect opportunity for Birmingham investors to secure buy-to-let properties with long-term value appreciation.
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.
There are many reasons why Birmingham investment real estate is a sought after by investors, buying property in Birmingham can be quite lucrative and the ever-growing Birmingham property market is a great reason why you should invest in Birmingham.
Birmingham is a promising destination for local and global property investors seeking diverse 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 result from 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 there will be an increase in investment property for sale in Birmingham over the next few years.
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.
Numerous 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.
Birmingham’s investment property opportunities have 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.
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, Birmingham property 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.
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.
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.
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.
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.
Mitigate upfront costs with flexible payment plans. Many developers offer deposits or installments tied to key construction milestones, making Birmingham property investment more accessible.
Birmingham is a huge business hub, attracting global firms that support its economy and making it a great destination for Birmingham property investors and those seeking investment property for sale in Birmingham. Many multinational companies have chosen the city as a base due to its strategic location, workforce, and strong transport links.
Some of the most notable businesses with regional or head offices in Birmingham include:
With such a strong corporate presence, Birmingham offers increased employment prospects and demand for rental properties, making it a hotspot for Birmingham property investments.
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 property 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.
Compared to London, Birmingham’s rental prices are considerably more affordable, making a Birmingham investment property for sale more appealing. To give you an idea of the average property prices in Birmingham, 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.
Birmingham’s property 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 global general interest.
With business booming and the demand for housing continually rising, the city’s economy and infrastructure are healthy and look promising for future Birmingham property investments.
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.
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