Why Property? Part XIII; Birmingham’s Prosperous Property Market
Birmingham’s property market is once again looking prosperous as investors flock to the area to get a piece of the latest redevelopments. A property boom has been created by the coinciding of £4 billion investments to the city’s infrastructure creating new transport links and public services. The redevelopment of New Street station and Grand Central shopping centre costing £750 million has encouraged thousands more commuters to use the area’s rail links and with the completion of HS2 in the near future Birmingham will be just a 49 minute journey to London; commuters can easily live in the Midlands yet work in the capital. People are looking to invest in Birmingham as it is ever proving itself as a ‘global city’; work continues on the new Metro system which will provide rapid transport around the city centre as well as just a 20 minute connection to Birmingham International Airport. The rise in profile of the city is supported by the moves of certain head offices from London to Birmingham, HSBC and Deutsche Bank being just some of the well-known companies calling the city ‘home’. The rising rental demand can be attributed in some part to the creation of 14,000 new city-centre jobs over the last two years, and shows no sign of slowing down before 2019.
These factors have meant that there is an unprecedented rental demand within the city centre, a demand that cannot be met by developers resulting in a ‘property boom’. As well as professionals and investors looking for property in the city centre, apartment prices have rocketed due to the high demand from the 73,000 students attending Birmingham’s 5 universities. The recently redeveloped Eastside area of the city centre is also home to Birmingham City University and therefore house hunters in the form of students. Around 10,000 of these students are from China and middle-class backgrounds meaning they have substantial budgets from home enabling them to rent in some of Birmingham’s most desirable areas.
The lack of new apartment developments in Birmingham city-centre is one reason accountable for the substantial upward curve in rental yields; developers are simply not able to keep up with demand! This is where there is a unique opportunity for investment; as markets within the UK return to their prosperous phases more developments are in construction phases. With such a high demand, investing in a Birmingham property has never seemed such a good idea, where rental yields are high and there is a thirsty supply for tenants. Claremont Property Group can help get your portfolio started; please do not hesitate to contact us on +44 121 236 3310 or email@example.com or look at our website www.claremontgroup.co.uk.