Property prices in Birmingham look set to rise by 27 per cent as the city basks in the glory of its Commonwealth Games success. It also offers a multitude of other benefits, from its position as a major transport hub to its affordability.
Exceeding expectations
As reported on the BBC news website the city ‘exceeded expectations when it played host to the Commonwealth Games in July and August. The event catapulted England’s second city onto a global stage where it was showcased to a mammoth audience of around a billion people.
Banners around the Commonwealth Games stadium proclaimed that ‘Sport is Just the Beginning’ and it seems that the city – including its property market – is going to be affected by its legacy for many years to come.
Commonwealth Games Effect
Britain has hosted four Commonwealth Games since 1970 and property values have gone up by 14.9 per cent on average in the host cities in the year following the event. In Manchester, for example, house prices rocketed by 24 per cent in the 12 months from the time the 2002 Commonwealth Games torch was lit at the event’s opening ceremony.
Some experts are predicting that Birmingham can expand on this, with the likes of JLL saying that property prices will go up by 27 per cent in the next six years. The Commonwealth Games is cited as a major driver of this.
JLL is also predicting that rents will go up by an average of 2.8 per cent a year over the same period, thanks to Birmingham’s booming reputation and a thriving job market. This is boosting rental demand, which is hitting record levels in Birmingham city centre and is proving attractive to investors.
More than just a sports city
As more and more investors commission their next building survey in Birmingham and instruct specialists such as Sam Conveyancing, it is also worth considering other factors that are undoubtedly adding to the city’s popularity.
The High-Speed 2 (HS2) link will see Birmingham as a central hub in England, connecting the North and London. The £106 billion railway is part of the Tory government’s Levelling Up plans and is aimed at improving connectivity and boosting opportunities in the regional cities of the UK.
Big plans for the future
Birmingham is also the location of The Big City Plan, aimed at creating a truly world-class central area. The plan is being heralded as the ‘most ambitious’ and ‘far-reaching’ project of its kind ever to be undertaken in the UK and includes plans for the next two decades. These plans will result in the creation of more than 50,000 new jobs and 1.5 million sq. metres of floor space and the contribution of £2.1 billion to the UK economy each year.
Alternative to London
Birmingham’s prowess is also growing as big businesses see it as a viable alternative to England’s capital city. Goldman Sachs, the renowned investment banking giant, for example, has opened its headquarters in Birmingham. Not only is this boosting the city’s reputation, but it is also attracting high-earning renters who are causing excitement in the city’s build-to-rent marketplace.
HSBC Bank also opened up its Birmingham headquarters in 2018 and this trend is influencing and reflecting increasing opportunities for regional cities such as Birmingham to attract blue-chip employers.
There is also an ongoing migration of people of all demographics moving to regional cities as an affordable alternative to London. Even before the pandemic, more than 20,000 people moved from London to Birmingham in the two years from 2015 and this number continues to grow.