19th
Mar 2018
It may be surprising to those outside of Birmingham, that the city since 2016 has been lauded as one of the top cities in Europe to invest in when voted the sixth highest in the PwC and Urban Land Institute ‘Emerging Trends in Real Estate’ report.; even more surprising was that London didn't make the top 10.
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Over the last few years Birmingham has established itself as one of the best cities in Britain for property investments, and should be seriously considered for any further additions to existing portfolios.
Birmingham has received billions of pounds investment for redevelopment to encourage people and businesses into the city which has resulted in attracting many new firms, professionals, skilled workforces to the 'hot spot'.
Along with the promised HS2 rail service with an excellent, reliable and fast connection to the capital, Leeds and Manchester which no doubt will attract even more professionals and businesses into the city's precincts. Already plans have been developed to build new residential areas alongside retails sites to attract a new influx of professionals and businesses.
However as positive as Birmingham sounds for investment in property there will be risks as in most areas and many new 'would be' investors in the city will take their time on a thorough research of the area... but the potential is there.
There are relatively low numbers of housing which has pushed prices sky high and Birmingham is trying to encourage buy-to-let investors back to the city with the new residential developments.
In the last few years investors have enjoyed yield growths of nearly 25%, during 2015/16 the price growth was 5.3% and it is now predicted that capital gains profit will rise up to 17% over 2015 to 2019.
One other 'plus' that Birmingham offers is it 'houses' 75,000 students every year and affordable price outside of the Halls of Residences are a second year student's priority.
The city of Birmingham has a great potential for landlords wishing to expand heir portfolios or for those investors just entering into the sector.
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