Birmingham residential property investment market 2019

 

Birmingham is the UK’s second largest city and the regional capital of the West Midlands.

Over recent years it has undergone a significant transformation, with large areas of the city being regenerated. Birmingham has developed into a modern, internationally recognised location for commerce with a thriving business, retail and leisure offerings.

Recent forecasts suggest both the population and the local economy will expand at healthy rates over the next five years at least. Improving employment rates and rising salaries have also raised aspirations with regard to housing.

Future economic growth will be supported by public initiatives such as the Big City Plan, a 20-year programme of urban regeneration which will create an estimated 50,000 new jobs.

The expansion of the city is fuelling demand for housing, in particular for rented accommodation and the combination of good yields and strong tenant demand has made the city very popular with property investors. Moreover, supply is expected to lag demand for some time to come which should trigger further capital and rental value growth and continue to provide attractive investment opportunities.

For more insight, please click and download the free report

Birmingham Residential Statistics:

 
 
C6261+-+Birmingham+report+for+international+event+WEB_Page_09.jpg
 
 

Prices

Strong demand from buyers, in particular from buy-to-let investors, has helped drive price growth against a backdrop of low new supply. Average sale prices in Birmingham have risen by a little over 30% over the past five years compared to a 27% increase in the wider West Midlands region.

With one and two bed apartments proving the most sought after by tenants, apartments have outperformed the rest of the market, with prices rising 39% over the past five years. Average asking prices for apartments in the city centre currently range from around £190,000 for a 1-bed flat to £540,000 for a 3-bed flat.

 
 
Graph-1.jpg
 
 

Rents in the city centre have risen steadily over the past couple of years thanks to strong tenant demand and current asking prices are around £770 per month for a 1-bed flat and £1,040 per month for a 2-bed flat.

 
 
The new 'Birmingham Interchange' HS2 station in Solihull  (Image: Handout)

The new 'Birmingham Interchange' HS2 station in Solihull (Image: Handout)

 
 

Yields

Current gross initial yields for rental investments are comparable to many other large cities in the country and considerably better than those on offer in London. Rental growth prospects are also strong given the projected growth in household numbers and the likelihood that supply will not keep pace with demand over the medium term atleast.

 
 
CGI of the new HS2 station in Curzon Street, Birmingham  (Image: HS2)

CGI of the new HS2 station in Curzon Street, Birmingham (Image: HS2)

 

 

If you would like to know more about investment homes in Birmingham, Chestertons is offering luxury apartments near the city centre called Snow Hill Wharf.

 
 
The Fazeley building in Snow Hill Wharf

The Fazeley building in Snow Hill Wharf

 
 

Snow Hill Wharf is an investment opportunity like no other.

The 404 apartments brings luxury into Birmingham and is built to the highest level of specification and quality. It offesr a host of unique facilities, such as a 24-hour concierge, residents’ gym, cinema room and tranquil landscaped podium gardens.

The development’s stunning canal-side location, just minutes from the Colmore Business District and prime transport hubs including the forthcoming high-speed railway station (HS2), combines serenity with the convenience of city centre living.

To learn more about the investment features of Snow Hill Wharf, please click here or email us on offplan@chestertons.com, or whatsapp +971552233184.

 
 
Newsrafael mondonedo