Birmingham, UK Property Market Expected to Continue Growth
Overseas property buyers are seeing opportunities as UK continues to deal for Brexit. The market is looking attractive for foreign investors, thanks to its weak currency and changes to its stamp duty rate. Although prices may be at an all-time low, investors are also looking beyond London, known for super-prime market in recent years. Birmingham is an increasingly popular option for international buyers looking outside the capital.
Prices have progressively grown in Birmingham, the second city of the UK and one of the country’s largest financial services hub. The real estate market will likely see a boost in the coming years ahead, as redevelopments hold strong among high demand from young professionals.
Mansion Global reports: “the Birmingham real estate sector has outperformed the U.K., with 5.5% price growth in 2018, compared to the nationwide average of 3.5%. West Midlands as a whole, saw prices rise 6.1%. Transaction levels were higher in Birmingham compared to the rest of the U.K in 2018. The number of properties sold in May 2018 was up 3.6%, while sales across England and Wales dropped 1.5%.”
Prices last year were buoyed by a combination of affordability, an emerging technology industry, new developments and an increasingly young labor force. Job availability in the technology sector increased 13% in the past two years, and housing pipeline has been steadily rising since 2014.
“By 2018, there are 4,507 residential units under construction as part of larger schemes of more than 30 units, and there are 4,781 units in larger schemes in planning stages,” Mansion Global writes.
With a number of key factors, the powerhouse of the Midlands boasts a plethora of investment opportunities in the build-to-rent market. Nearly 40% of Birmingham’s current population is under age 25, while the build-to-rent market is aimed towards those between 18 and 35. New projects built in the city center now offers a number of on-site amenities to appeal to younger professionals, including the new development of The Axium.
Birmingham is also the second largest start-up city in the UK and saw 18,590 start-ups in 2018. That’s a 41% increase since 2017. Large employers in the financial sector are also relocating to Birmingham, home to HSBC, Deloitte, HMRC and PwC. The Birmingham real estate market is forecasted to outperform all other UK cities in the next few years, including London, making it an ideal opportunity for investors.