Birmingham is the UK’s second city and one of the most attractive property markets for overseas investors in the country.
A growing population, large economy, impressive higher education sector and outstanding connectivity are just some of the reasons that make the city highly investible.
Add to that a once in a lifetime series of investments and regeneration projects, and you get a thoroughly modern city that has all the potential in the world.
Key facts for overseas investors at a glance:
- 16% economic growth in the next decade (Oxford Economics)
- 6,000 people move to Birmingham from London each year (ONS)
- 8% population growth by 2038 (Birmingham Demographic Brief)
- Only 8,800 homes planned in the city (Deloitte)
- 26.4% regional house price growth by 2029 (Savills)
Economic strength and great job opportunities
Birmingham has proven its resilience in recent years and is home to major national and international firms such as Amazon, PricewaterhouseCoopers, Goldman Sachs, HSBC, Jaguar Land Rover, Nuffield Health, Deloitte, Mondelez International and the National Grid.
Those companies provide world class jobs that bring people to Birmingham, but the city is also a hotbed of new economic growth too.
Research from PricewaterhouseCoopers (PwC) shows that the region received more Foreign Direct Investment (FDI) than anywhere else in the UK outside London last year. 181 FDI projects came to the city and generated a combined 8,252 new jobs.
Overall, the city’s economy is worth almost £28bn and Oxford Economics has forecast another 16% growth in the next decade.
A city population that is growing fast
That economic strength will continue attracting more people to Birmingham in the years ahead. The city has already become the number one destination for people leaving London, with research by the Office for National Statistics and Knight Frank showing that 6,000 people each year move from to Birmingham from the capital.
In total, the Birmingham Demographic Brief estimates that Birmingham’s population will grow 7.8% by 2038.
On top of that, Birmingham attracts approximately 10,000 international students each year and more than 40% of graduates choose to stay in the city. That’s another big group of people competing for housing along with the existing population and the new professionals moving to the city.
That level of competition is bound to keep pushing property prices and rents higher.
House prices and rents in Birmingham keep rising
There is a limited supply of housing in Birmingham, especially in popular areas with links to the city centre. That means overseas investors who buy apartments in Birmingham are choosing a profitable and reliable investment location.
The Deloitte Crane Survey shows that just 8,848 homes are scheduled to complete in Birmingham over the next three years. That’s a 36% increase over last year’s total, but it is clearly not enough to serve the city’s growing population.
With that in mind it’s no surprise that house prices in the region have gone up 2.6% in the last year despite the uncertainty of the last two years according to the Office for National Statistics (ONS).
As the market continues to recover and we enter a new property cycle, that pace of growth is likely to increase. The average national house price is already going up at the fastest rate for two years, and Birmingham will benefit from that national trend.
ONS data also shows that rents have increased by a huge 10.6% in Birmingham over the last year – another big factor in the city’s popularity with overseas investors.
In the future, JLL predicts rents will keep growing strongly until at least the end of 2027, and Savills predicts regional house prices will grow 26.4% by the end of 2029.
For overseas investors wondering why they should invest in a place like Birmingham, this level of present and future growth is the number one reason.
Connectivity
Birmingham is an extremely well connected city, with road, rail and air links across the UK and to the rest of the world.
The city’s success is built on this and further £1.4bn combined investment into the local light rail network, bus network, roads and additional railways links will only cement that further.
Biggest of all is the HS2 high speed rail line which will cut journey times to London in half and make Birmingham an even more attractive place to live for people relocating from London. The pace of arrivals from London increase 26% in the last full year on record, and that figure will only increase once HS2 is operational.
The line will also bring massive economic benefits to Birmingham and, again, make it an even more attractive place to live. It is estimated that HS2 will generate £10bn GVA and create 31,000 jobs.
Where should overseas buyers invest in Birmingham?
Birmingham is such a big city that there are a range of locations which would make a great investment for any overseas buyer. However, the key is to choose a luxury apartment with direct links to the city centre.
That will appeal to all of Birmingham’s fastest growing demographics – young professionals, international students, graduates and people relocating from London.
Deciding to invest in Birmingham apartments means you are choosing one of the most in-demand asset types in one of the UK’s busiest locations. You will have no shortage of tenants and can look forward to further property value and rental growth in the years to come.
This is a great time to buy Birmingham property and the city is the perfect choice for overseas investors looking to make the most of the stability and profits on offer in the UK property market.
Want to learn more about why Birmingham is such a popular buy to let destination for overseas investors? Get in touch with our team today to learn more about the city and our available investment opportunities.
