What are the best places to buy property in Birmingham?

What are the best places to buy property in Birmingham?

Property investment in Birmingham has recently gained prominence. The arrival of HS2 will improve connections, and regeneration has made Digbeth rival London's trendy Shoreditch. In Birmingham, where should you invest in property? Would it be better to invest in an area that has undergone regeneration, or in an area that has lain in the shadows for quite some time?

What makes Birmingham a good place to buy property?

Birmingham is often questioned as a great place to invest in property. Although it’s widely regarded as the UK's second city, it is still more affordable than London. According to Zoopla, the median property price in the UK is £204,929, while the average price in London is £653,965. The average wage in London hasn't kept pace with house prices. There is an average wage of £37,000 in London, and a wage of £29,000 in Birmingham. There is a direct correlation between wages and demand for housing. If people cannot afford housing, the demand will fall, and so will the prices, which is why the housing market in London is stagnant right now when wages are not increasing.

A look at Birmingham's economy

In addition to regeneration, business growth is another driver of property prices. People are always looking for jobs, and they want to live in an exciting city with plenty of cultural entertainment, good transportation and amenities nearby. HSBC has become one of Birmingham's largest employers in recent years, following the opening of office space by Deutsche Bank and HSBC.

Paradise Birmingham, one of the city's largest developments, has already been leased by PricewaterhouseCooper.

There are also numerous redevelopment projects along with business relocation. The development of Paradise Birmingham, the regeneration of Digbeth, and the introduction of HS2 contribute to Birmingham's continuous evolution and improvement.

Birmingham's best attractions

Both residents and visitors to Birmingham can enjoy a wide range of cultural experiences. In addition to its Michelin-starred restaurants, Birmingham is home to a vibrant arts scene. The Birmingham Hippodrome sells more tickets than any other theatre, including those in the West End. In addition, it is home to the largest jewellery school in Europe, as well as the Royal Birmingham Society of Artists, the UK's second oldest independent art gallery. Jewellery Quarter in Birmingham has also been identified for regeneration as a hub for creative businesses.

A vibrant arts and culture scene attracts new residents and boosts tourism in cities. There are many galleries, museums, and theatres in the area, which makes it a more appealing place to live for current residents.

Age demographics in Birmingham

Birmingham's core rental market consists of 40% of those under 25. It also has the 4th highest graduate retention rate, with 41% of its students choosing to remain. This is ideal because after graduation, they will need to rent until they can save up for a down payment. As a result, investors will be able to sell to a growing market.

Property prices in Birmingham

Birmingham's property prices are accelerating more rapidly than the national average thanks to all the potential. There has been an increase of 16% in property prices since 2016, which is the highest in the UK.

Birmingham property buying: where should you look?

It is a good idea to invest in property in Birmingham if you want to make a profit. The property market is growing faster than other areas of the UK if you're looking to increase your capital. Rental yields also outperform the national average at 5%. It is important to choose the right place to invest in Birmingham if you are serious about investing there.

Birmingham's best property investment locations are listed below.

Holloway Head

Up until recently, Holloway Head has not enjoyed the same level of exposure as Digbeth and the Jewellery Quarter. Near the Chinese Quarter, Holloway Head is located in Birmingham's city centre. With its convenient location near New Street Station and the Bullring shopping centre, it earns some of its appeal. There have been plans to build large penthouses there recently as part of a regeneration project. The High Street Group is also planning to build 487 residential apartment units with commercial space and parking in the area. The area is already home to the most expensive penthouse in Birmingham.

Considering the growing number of residential schemes in Holloway Head and its appealing location, it may be a good time for individual investors to consider buying a property here.

Digbeth

Digbeth has been on the rise for a while now, being named the "Coolest Neighbourhood in Britain" by the Sunday Times. Industrial influences have been combined with artistic influences in the regeneration process. Known for its music and art scene, it is an inner-city area with a vibrant art scene. A wide range of independent shops and cafes can be found here, as well as bars and restaurants. As warehouses are converted into homes and shared offices, the Custard Factory (previously a Bird's Custard Factory) has been transformed into 15 acres of shops, restaurants, event space, and digital enterprises. The average property price in Digbeth has jumped 19% in a year, despite still being relatively modest at £150,389, reflecting the increasing interest in this area from young creatives. Digbeth is also experiencing rising property prices, so perhaps investors should consider it as well.

A property investment opportunity in Digbeth is Westminster Works. Westminster Works consists of 220 high-end one- and two-bedroom apartments. As part of the development, residents will have access to a concierge service, 24/7 security service, Sky Lounge access, and smart technology. Prices start at £178,420 and rental yields are estimated at 6%.

Edgbaston

In the suburbs, you'll find Edgbaston. In spite of its leafy surroundings, it is close to the city center and the University of Birmingham, making it a popular location for families and students alike. If the correct HMO rental licences are obtained, investors will have a greater variety of tenants to choose from.

There are a number of cultural attractions in Edgbaston, including the Edgbaston Cricket Ground, independent bars and cafes, the Victorian Botanical Gardens, the Midlands Art Centre, and Cannon Hill Park. As a result of all its amenities, it is already a highly coveted affluent area, so selling your property will not be a problem.

Since ten years ago, Edgbaston's average property price has increased by 39.04% to £295,700. This is a higher entry point than in most of our other areas, but Edgbaston and its stock still have a lot of appeal. Rents have kept pace with price increases, with an average monthly rent of £1,014. Investors can rest assured that Edgbaston properties will always be in demand due to their high quality. Edgbaston is a good place to purchase a home in Birmingham because of this.

Perry Barr

Perry Barr was regenerated for the Commonwealth Games in 2022. New housing developments, sports and leisure facilities, a secondary school and sixth form, and road improvements are some of the proposed projects. When the regeneration takes place, we can expect an increase in desirability, as was the case with the London docklands and Stratford area for the 2012 Olympics. We believe that rental property demand in the area will increase as regeneration projects begin to take effect, and property prices have increased by 39% in the last ten years.

Jewellery Quarter

Birmingham's Jewellery Quarter is a central district with a rich jewellery heritage. The area once employed over 30,000 people, and it still accounts for 40% of all jewellery made in the UK today. A decline in the industry led to its redevelopment into a vibrant center for creative businesses.

Young creatives have been drawn to the area by its regeneration, proximity to the city center, and new offering of museums, bars, and restaurants. As a result of this, demand for property in the area has increased by 28% over the past three years - making it one of Birmingham's most sought after areas.

As an established hot spot, the Jewellery Quarter gives investors some level of assurance.

Solihull

The Solihull area is located eight miles southeast of Birmingham and offers a wide range of attractive areas for buying a home. It's a great location for first-time buyers, families, and working professionals looking for leisure, shopping, and dining experiences.

Near Birmingham, the cultural district offers a simple and convenient passageway to tranquil rural villages for a countryside escape. Located just over Solihull's border, Olton is one of the most sought-after locations for first-time buyers.

Compared to the rest of Solihull, the average house price in Olton is £188k. Solihull's Olton area is more affordable if your budget isn't as tight.

Due to the versatility of the area, Solihull houses have varying prices. Semi-detached homes were the most popular sale at £318k, followed by detached at £591k, and terraced at £254k, according to Rightmove.

There are several towns within the borough, including Dorridge, Hampton-in-Arden, Marston Green, Hockley Heath, Shirley, Knowle and Castle Bromwich. With excellent transportation links, Solihull remains an ideal commuter city for Birmingham careers.

Is Birmingham still an attractive investment location?

Birmingham remains a good investment opportunity. There are still regeneration projects underway, such as Paradise Birmingham and the Big City Plan, which will encourage more people to move to the city for work. Renting and buying properties is perfectly suited to its demographic.

Since regeneration projects started in Birmingham, property prices have been on the rise, but they remain significantly lower than in other key cities like London and Manchester. As a result of its employment and entertainment offerings, the city is expected to attract more people. It is now the right time to invest in Birmingham since housing remains affordable.

What areas do Carpenter Surveyors cover for surveys and valuations?

Areas we cover:

Warwickshire, Worcestershire, West Midlands, Staffordshire, Leicestershire, Rutland, Nottinghamshire, Derby, Gloucestershire, Herefordshire, Cotswolds and Northamptonshire.

Get a Quote from Carpenter Surveyors today.

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