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Why You Should Invest in Birmingham

Posted by bigroarltd on February 22, 2022
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There are many reasons why you should keep an eye on the Birmingham property market in 2022. Birmingham is showing great promise for growth in this decade – it is seeing substantial tenant demand; there are regeneration schemes in progress and, international employers continue to relocate to the city. 

Property Investment in Birmingham: Buy-to-Let 

Establishing itself as the UK’s second city, Birmingham is displaying endless potential for growth with strong rental yields and affordable properties. In addition, the city is seeing billion-pound investments in commercial and residential property and infrastructure projects. Also, this makes Birmingham rank as one of the most popular investment locations in Europe. 

With the 2022 Commonwealth Games around the corner, regeneration projects and a healthy business district positions Birmingham as a prime property investment opportunity. 

Buy-to-Let: London vs Birmingham 

Birmingham has the largest professional hub outside of the capital, a workforce of 100,000 strong it is on track to rank in the top 10 for economic output by the end of 2021. Noted as the fastest growing UK city for home price growth since 2016, Birmingham predicts to have better returns on investment in the long term compared to London. Leading investors to favour Birmingham to London over the last five years for Buy-to-Let properties. 

Due to its affordability, average rental yields in Birmingham are trending higher than other competitors — the average property value is approximately three times less than in London. The quality of its facilities means rental prices are rising, offering better returns for investors. 

Birmingham Commonwealth Games 2022 

The Birmingham Games will take place between 27 July and 7 August 2022. It expects to draw over one million spectators providing a significant boost to Birmingham’s local economy. 

Quick Statistics 

  • Birmingham Games 2022 will attract over 1 million spectators 
  • Provide 12,500 volunteers with training and qualification opportunities 
  • Viewed by a global audience of up to 1.5bn 
  • £778m investment into the city and region 
  • £70m expansion of the Alexander Stadium 
  • £60m aquatics centre in Sandwell 
  • Expected to create on average 4,500 jobs a year until 2022 and then 950 after 

New Developments in Birmingham 

Investors should carefully consider the impact of regeneration as part of any property investment. In Birmingham, there are a variety of new developments every month and changes planned for the next decade. 

High Speed 2 (HS2) 

Scheduled for completion in 2026, the first phase of HS2 is on target to be one of Europe biggest infrastructure projects. The project aims to cut travel times between Birmingham and London slashed to under an hour. In addition, to the ease of access between the cities, it will provide around 30,000 new jobs via the construction and operation of the line. Investors should consider developments near the HS2 build – as transport links are always good for demand. 

Birmingham Smithfield 

Near the Eastside district, Birmingham Smithfield is a £1.5 billion development. 14-hectares in size, it was the of Birmingham’s wholesale markets but will be transformed into a lively mix of retail, leisure, and residential units. This development expects to make a £470 million impact in the local economy with 1,000 new homes and 3,000 new jobs. 

Paradise 

Introducing 1.8 million sq. ft of new grade A office space, retail, leisure, and a circa 250-bedroom hotel, Paradise is a £700 million project already underway in one of the most central parts of the city centre. The project expects to finish in 2026. it will serve as a link between the city centre and Birmingham’s Westside. 

Arena Central 

Arena Central will be the site of the new HSBC UK headquarters, which in 2017 earned Birmingham’s biggest pre-let in a decade from the Government – a 240,000 sq. ft building to house several services, including the Midlands regional hub for HMRC. Arena Central, located close to the Paradise development and a short distance from Birmingham’s Mailbox district. 

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