Why invest in Birmingham property?
Along with being the UK’s second largest city, Birmingham’s strategic location, economic & demographic growth put it on the map of many a property investor. Here’s the data that goes to prove that statement:
- Birmingham’s population grew by 163% from 2002 to 2015 and the trend doesn’t seem to be slowing down.
- 40 % of the population is under 25 years of age, meaning very renter friendly. If you’re looking for buy-to-let properties for sale, this piece of information should tickle your fancy. High occupancy rates are just about guaranteed with the 80 000 students in Birmingham.
- Rental demand in Birmingham grew by 25.2% in the last year with a an average monthly increase of 2.5% over the last few months.
- Birmingham property market is one of the most affordable in the country, with the average sold price standing at £238,656:
- Detached: £441,005
- Semi-detached: £241,074
- Terraced: £211,705
- Flats: £145,075
- Birmingham’s rental yields offer a strong return on investment. Today, Birmingham’s average rental yields sit at around 6.56 %, which is a 1.16% increase compared to last year.
What to expect from properties in Birmingham?
Birmingham is a real strategic opportunity property investors can capitalise on. From a beneficial geographical location to multiple regeneration projects, there are many things to look forward to.
Whether you’re looking for a commercial or residential property for sale, Birmingham has got you covered. Also, compared to London, property investors would be facing less competition and potentially more lucrative returns. Especially considering the far more accessible price points of Birmingham properties and the ongoing investments and regeneration projects.
In addition, the upcoming Commonwealth Games will surely shine an even brighter light on Birmingham and positively impact its property price growth.
Who should invest in properties in Birmingham?
When it comes to the type of property investment, Birmingham is an amazing choice for both buy-to-let property investors and those looking to invest in student accommodation.
Those looking for buy-to-let investment properties in Birmingham should focus on the rental demand. Considering Birmingham is a city populated mainly by people below the age of 25, securing high occupancy rates and rental demand certainly won’t be an issue any time soon.
Not to mention the 80.000 students residing in Birmingham, which should interest Student Accommodation property investors.
And for those on the lookout for long-term investments, Birmingham has truly exciting growth prospects!
Starting with Birmingham property prices, which over the last 10 years grew by more than 45.94% and don’t seem to be slowing down. In fact, it is expected that the average property prices in Birmingham will grow by 16.5% between 2020 and 2024. Which is slightly higher than the UK average of 14.8%.
Where to buy property in Birmingham?
When it comes to the value of your future property, Birmingham is in a unique position. It’s still considered as an up-and-coming location, and property prices are a true reflection of that situation.
If you’re in the market for a residential investment property for sale, in Birmingham you’ll be looking at prices that are in line with the more affordable north.
Now let’s take a look at the most popular property investment areas in Birmingham and what type of investors they’re most suited for.
- Birmingham City Centre– an attractive spot for young professionals & buy-to-let property investors looking to cater to that market
Rental Yields: 5.2%
Average Property Price: £223,378
- Jewellery Quarter– year after year this area keeps attracting buy-to-let property investors looking to rent out their properties to young professionals moving into the city
Rental Yields: 4%
Average Property Price: £210,083
- Birmingham Airport Area– with the HS2 Rail project underway, this area is sure to grow in popularity over the next few years. Property investors should definitely keep their eye on this area in order to capitalise on this new up-and-coming area.
If you’re looking for a great residential investment property for sale, check out our Park Gate offer and contact us for more information!
- Erdington– considered as an emerging market in Birmingham, and also one of the most affordable ones. Erdington is a perfect choice for a long-term investment.
Rental Yields: 5%
Average Property Price: £179,256
- Harborne– is one of the most desirable postcodes for families & more established professionals. It’s also one of the best options for those looking for buy-to-let investment properties in Birmingham.
Rental Yields: 4.6%
Average Property Price: £375,767
- Digbeth– is a vibrant location for young people to both work and line in. It is considered as Birmingham’s top up-and-coming area. Which makes it perfect for a buy-to-let investor.
Rental Yields: 4.7%
Average Property Price: £203,600
Check out our website for all properties for sale in Birmingham, and start your journey with Aspen Woolf, a safe property investment