A guide to investing in: BIRMINGHAM

As the largest city outside of London, this central hotspot has a lot to offer investors, particularly in the commercial and buy-to-let markets. Currently home to over 1 million people, the city has a great pipeline of prospective tenants looking for high quality accommodation both in the city centre and its surrounding suburbs - offering fantastic opportunities for all types of property investors. The city also has some of the highest yields across the whole of the UK, with returns in some areas of Birmingham reaching up to 13.5%.


• Two major investment schemes are taking place in Birmingham over the next few decades bringing a wealth of investment and appeal to the city

• House prices in the city are predicted to grow 15.9%, and rent is predicted to grow 13.1% by 2022

• Both employment opportunities and the economy are predicted to grow between 0.6% and 2.1% respectively by 2022

• Birmingham is home to over 80,000 students per year across its five universities

• The city has the sixth highest retention rate of graduates in the UK

• Birmingham is one of the largest professional services hubs outside of London


Birmingham... the city

Home to many attractions including the Bullring Shopping Centre, multiple renowned theatres, restaurants and bars, and the new village that will house the 2022 Commonwealth Games, Birmingham offers investors, residents and businesses a one-in-a-lifetime opportunity. As the largest city outside of London, Birmingham is home to over 1 million residents - a number which grew by 100,000 between 2001 and 2015 and is only predicted to continue to increase over the next decade.


Birmingham... investment in the city

Birmingham has seen a wealth of investment over the past few years, particularly in the residential off-plan and new build property sector. However, it is bigger projects such as The Big City Plan and HS2 that have drawn both investors and residents to the city.


The Big City Plan is a 20-year masterplan that will transform the city, bringing thousands of new homes, 65,000 sq.m. of public space, 28km of enhanced cycling and walking routes, and 1.5 million sq.m. of new floorspace to the area. Along with this, it's predicted that the city will see an exponential growth in population, especially in young professionals moving to the city, as well as 50,000 new jobs and a £2.1bn boost for the economy annually.


Birmingham is also playing a major role in the HS2 (High Speed Railway) Scheme, which will see the city connected to hotspots such as London and Manchester with significantly reduced travel times.The city will see two new stations being built - one at Birmingham Airport, and one in the city centre - which will bring a wealth of tourism and commuting workers to the area.


Birmingham... the economy

Dominated by the service sector, Birmingham boasts one of the biggest economies in this division - approximately 80% of the city's employment is within this sector. This has made Birmingham the largest employment centre for the health, education and public administration sectors in the UK, an economy that is now the second largest in the country and, as of 2014, was as $121.4bn.


Located centrally in the country, Birmingham has become a hub of distribution for many companies, and has even seen a number of global giants move their headquarters away from London to the area.


Birmingham... the universities

Birmingham is home to five universities: University of Birmingham, Birmingham City University, Aston University, University College Birmingham and Newman University; making it the largest centre for higher education outside of London. Plus, the city also plays host to the Open University, BPP University and The University of Law.


As a hub of higher education, the city attracts over 80,000 students each year, 33,000 of which are research students. With so much on offer, it's also no surprise that a large number of graduates from Birmingham's universities and colleges choose to stay on in the city for work, giving a lucrative pipeline of young professionals for landlords.


Birmingham... the property

JLL recently predicted that house prices in Birmingham would rise 15.9% by 2022, 1.5 times higher than the national average. Since the referendum in June 2016, Birmingham has boasted double digit growth, while still managing to keep mortgage rates low, drawing a wealth of people to the area and bumping up prices.


JLL also stated a predicted rental growth of 13.1% - twice the national average - by 2022. This figure isn't surprising given the popularity of Birmingham for prospective tenants. Alongside these growing rental prices, this has also boosted the returns that investors can expect to make in the city. Lend Invest recently reported that Birmingham's B7 and B44 postcodes were in the top places for yields in the UK, with available yields in these areas of between 10.4% and 13.5%.


While yields are lower in some more central parts of the city, these are still highly impressive with many developments offering between 5.9% and 10.8% returns for a number of years. These impressive yields are greatly driven by the city's low supply and high demand.


Looking for a great opportunity in Birmingham for your clients? Get in touch with us today and find out about our lucrative off-plan residential opportunity - +44(0)161 3026732 // info@globaledge.co.uk

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