Birmingham has experienced an incredible transformation over recent years. Shaking off its previously industrial image. The UK’s second city has emerged as a world class contender, attracting and retaining increasing numbers of the population and global businesses into its core.
Now the most populous city outside of London in the UK, the second city has welcomed a population increase of 163% since 2002 according to Centre for Cities. Birmingham is also the youngest city in Europe, demonstrating the allure it has with young professionals looking for a ‘true city-centre lifestyle’, delivering excellent employment opportunities and quality amenities on their doorstep.
With the considerable amount of investment that is still to come to the city – notably HS2, Paradise (£700 million), Birmingham Smithfield (£1 billion GDV), Birmingham’s popularity is set to continue its upwards spiral. Census projections suggest Birmingham’s population will grow by 13.5% across 20 years to 2039, bringing its total population to 1.3 million.
For property investors and current landlords this is encouraging news. Whilst the city remains an affordable living location it will continue to draw in increasing numbers of people. Yet it continues to suffer from a chronic undersupply of residential property, causing rising demand and price growth.
Whilst Birmingham’s objectively assessed new housing need for the period 2011 to 2031 has been predicted at 89,000 – to meet an expected population growth of 150,000, Birmingham’s Development Plan only accounts for a ‘possible’ 51,100 – meaning a best case shortfall of 37,900. The effects are clear in the house price growth figures. During 2018, house prices in the city increased 5.5%, significantly higher than the national average of 3.5% over the same period. Over the past 10 years the city has seen price increases of 45%.
This represents potentially significant returns for those who invested in the city during these periods of time. For those who are still to invest, it means there is no better time than now.
Invest in 105 Broad Street – Birmingham’s Hottest property
For those looking to start earning a return on their investment as soon as possible, 105 Broad Street, by leading UK property developer SevenCapital, is a prime opportunity; located in one of Birmingham’s most highly sought-after postcodes, just minutes from the city’s main business district including the recently opened new HSBC UK headquarters.
Already complete, this spectacular development offers a ready-made opportunity for discerning investors looking to start gaining immediate returns from this lucrative market, with some units already tenanted.
105 Broad Street features 214 spacious, high-specification one and two-bedroom apartments with private concierge and residents only gym, designed to meet the surging demand for luxury living in the UK’s second city.
With stunning views of Birmingham’s cityscape and some of the city’s main BFPS (business, financial and professional services) employers on the doorstep – such as HSBC, Deutsche Bank, PwC, 105 Broad Street is already attracting a host of executive tenants looking for both luxury and convenience within equal distance of their places of work and play.
105 Broad Street is also just a 10-minute walk from the £700million Paradise development and within easy reach of the Eastside area of the city, which will be the Birmingham home for HS2 when it becomes operational in 2026.
Andy Foote, director at SevenCapital, said: “105 Street represents a great opportunity for investors looking to start gaining now from this fast-growing property market. Birmingham has attracted an incredible amount of investment from all directions over recent years and as a result is drawing increasing numbers of people into the city who are looking for high quality accommodation near to their places of work and preferred entertainment.
“The build rate for new city centre developments, especially those designed for this growing number of executive tenants is struggling to keep up with the rate of demand. Investors looking to 105 Broad Street have a real opportunity to enter the market now and reap the rewards early on.”