The city is challenging the likes of Manchester and London
Birmingham is fast becoming one of the most compelling destinations for property investment, with strong price growth, rising rental demand and billions of pounds in infrastructure investment helping it challenge traditional hotspots such as Manchester and London, according to a new report.
The report, commissioned by Berkeley Group and prepared by PriceHubble, suggests that Birmingham is projected to see proportionally more price growth than either city over the next four years, while still remaining cheaper for property.
Outperforming rivals
The research shows that over the last decade, average new-build prices in Birmingham have risen by 57%, outperforming London which saw growth of 25% over the same period.
Average rents in Birmingham have increased by 37% over the past five years, with a further 14% forecast by 2030, while average apartment yields have nearly doubled, from 4.5% in 2021 to 8.1% in 2026, outperforming both London and Manchester.
Berkeley Group is developing Glasswater Locks, part of a canalside development alongside the Digbeth Canal in the city’s Learning Quarter, offering a collection of one- and two-bedroom apartments.
A sustained transformation
Stephen Kirwan, managing director of Berkeley Group, said: “Birmingham is undergoing a period of sustained transformation, with investment in infrastructure, employment and regeneration driving long-term growth.
“For buyers and investors, the city offers a compelling combination of strong fundamentals, relative value and future potential, which is increasingly positioning it alongside other major UK cities.”
Reece Parkinson, founder and director of Birmingham-based company Swift Property, said: “The market in Birmingham over the past five years has been phenomenal. We’ve seen huge spikes in demand and significant growth over that time.”
“With new developments like Glasswater Locks coming onto the Birmingham scene, there’s been a massive boost to the housing quality in the area. As a result, we’ve seen a wider range of purchases being drawn to the city. The high quality and luxury feel of developments like this are significant factors in enhancing the Birmingham rental market and helping the city challenge both London and Manchester.”