Investment Guide 2021 Birmingham
B
irmingham remains firmly
reach pre-Covid activity
on investors radars as we
levels.
enter 2021. Its potential continues to exceed many
Capital appreciation is often
other investment hotspots.
at the top of a discerning investors priorities as most
Before the Covid-19
will plan for the long term,
pandemic, Birmingham was
Birmingham is set to deliver
frequently making headlines
excellent returns over the
for its economic growth and
next five years. With
was the centre of attention
continued regeneration and
for considerable investment
development, improvements
both domestic and foreign.
to infrastructure, a growing
The planned continued
population and strong
improvements to
economy, Birmingham’s
infrastructure and
future is bright.
regeneration, together with residential development are set to build momentum to enable Birmingham to quickly
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Why Birmingham? B
irmingham is the second
host the 2022 Commonwealth
largest city, metropolitan area
Games. The Commonwealth
and urban area in England and the
Games will be the largest sporting
United Kingdom. There are
event that the UK has hosted
approximately 1.1 million
since the London Olympics in
residents within the city and
2012. They are predicted to boost
around 2.9 million live in the
to tourism in Birmingham with
wider urban area.
between 500,000-1million additional visitors expected over
Located in the West Midlands,
the 11-day sporting event. The
geographically at a central point
Games are estimated to generate
of the UK, Birmingham is
around £750 million, providing a
perfectly located for logistics and
significant boost to the
for businesses who need to reach
local economy.
other parts of the country easily. An exciting event is on the horizon for Birmingham as it will 4
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Economy T
he UK’s second city,
the country. The West Midlands is
Birmingham is an economic
well known for its automotive
giant, global businesses such as
industry with over a quarter of
PriceWaterhouseCooper, HSBC,
the UK’s aerospace industry
BT and Deutsche Bank all have
located in the region.
large bases in Birmingham, and many have headquarters here such
A recent economic study, the UK
as engineering company IMI plc.
Powerhouse report by law firm Irwin Mitchell and the Centre for
Birmingham’s economy is diverse
Economics and Business Research
and doesn’t rely on just one single
(Cebr), has forecast that the West
industry for its economy to grow.
Midlands will see swift recovery
Whilst the city has a strong
from the Covid-19 pandemic.
financial and professional services
Looking ahead to the end of the
sector, it is also a known
year, Birmingham’s employment
innovation hub, with an active
will enjoy 6.2% year-on-year
green and renewable energies
growth and annual output growth
industry, a growing digital and
in Q4 2021 is predicted to
creative section and has one of
increase by 7.8%.
the largest manufacturing bases in 6
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Education T
here are 5 different universities in Birmingham
and around 85,000 students in attendance each year. The five universities are Birmingham City University, University of Birmingham, Aston University, Newman University, and University College Birmingham. Increasingly those who’ve finished their studies are choosing to stay in Birmingham and make it their home meaning businesses have a growing talent pool to choose from.
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Infrastructure T
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he transport system
Birmingham’s Grand Central
connecting Birmingham
station has been enhanced in
internally and it’s connections
recent years improving train
externally to other parts of the
travel, the arrival of High Speed
country are better than almost
Rail 2 (HS2) will boost the
every other major city in the UK.
connectivity even further.
Public transport has been
HS2 is set to arrive in Birmingham
continuously improved in recent
in 2026 and will dramatically
years and the Midland Metro is
improve connections, the journey
set for further extensions to
from London to Birmingham will
Centenary Square/Edgbaston in
be reduced to around 50 minutes
Birmingham and in
from the 1 hour 20 minutes it
Wolverhampton city centre.
currently takes. 11
Regeneration
T
he redevelopment of the
The plan aims to grow the city
Bullring in 2003
central area by around 25%,
kickstarted a wave of
creating over 50,000 jobs and
development and
eventually contributing over
improvement across
£2.1billion to the local economy
Birmingham. In 2010 the
each year. Several mixed-use
local council created the ‘Big
developments such as Paradise
City Plan’ which outlines the
and Arena Central are notable
city’s vision for the next 20
additions to the city centre.
years in order to continue the regeneration and transformation. 12
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Birmingham Property Market
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B
irmingham’s house prices
comparatively, the average
have enjoyed strong
price paid for a property in
continued growth in recent years
London over the past 12
as the city has undergone
months is £699,812.
transformation and improvements. In their latest property Over the past 5 years, average
price forecasts, global real
prices in Birmingham have risen
estate agent Savills predict
by 17.5%, almost double the
that property prices in the
increases seen in London where
West Midlands will increase
average prices have risen just
by 21.7% by 2024.
10.3% over the past 5 years. Low entry price points and Of course, there is also a huge
strong potential for price
disparity between average
growth are amongst the
property prices in the two largest
reasons why investors
cities in the UK. According to
should have property in
Zoopla, the average price paid for
Birmingham as part of a
a property in Birmingham over the
diverse portfolio.
past 12 months is £211,392,
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Rental market
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R
ental yields are reported to be around 6% on average
across Birmingham with certain postcodes outperforming others. According to the latest forecast from JLL rental growth is expected to be around 15.9% over the next 5 years. Birmingham is reported to be the youngest city in Europe; around 40% of Birmingham’s population is under 25 years old, a demographic that is far more likely to rent and sustaining the strong demand for rental property in the city. Not only is the population young but it is set to grow considerably over the coming years. There are around 1.1million inhabitants a present, this is predicted to increase to 1.24 million by 2030.
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