With a population over 3 million, student numbers higher than ever at Birmingham’s numerous universities, the imminent arrival of HS2 bringing the Capital to Birmingham – and via versa (45minutes) – there has never been a better time to invest your money into the UK’s second city’s property market, says Adrian Endersby, UK Business Development Manager, Top Real Estate Group.
It is a busy cosmopolitan city, home to some of the UK’s leading blue chip companies. These conglomerates bring a property surge in their wake. It also seems that investors from all over the world are already looking at the city, after it was named above the likes of London, Milan and Paris in a recent annual European survey of investors. Property values in the city have risen by 8-10% in the past two years; this doesn’t look set to dip. It is without surprise that Birmingham’s property market is buoyant and fortunes are being created, if you’re shrewd.
This new wave of city center residential development is being led by Seven Capital who is buying up large areas of the city in a way not seen since before the recession, another key indicator demonstrating Birmingham is on the up. Top Real Estate Group is happy to announce they are working alongside Seven Capital as an exclusive marketing and sales agent for Kuwait and Qatar.
Seven Capital have become the most prolific investors in the city in the past year, developing a huge number of properties amid plans to build 5,000 homes in the center, continuing their long term investment into Birmingham.
Birmingham is thriving as an attractive residential property investment location being the UK’s second largest city after London. Regeneration has been gradual over the last decade as Birmingham has recovered from the steep decline in manufacturing in the 1980’s. Prices have already risen quite strongly in most districts and are set to continue. Birmingham is famous for its engineering (cars, machining, and light engineering), manufacturing and distribution. The service sector has increased substantially in the last decade and there is a very positive feel about the area and general good future economic prospects. One of its main strengths is its central location and huge population within a 2 hour drive. Rail and motorway networks are extensive and the new M6 toll has helped alleviate traffic congestion on the motorways in the West Midlands.
Buy to let investors should look at Birmingham and shun London’s bumper rents in favor of high yields, according to research. The income hotspots for property investors have been highlighted in nationwide data that looks at yields, rental income as a percentage of a property’s purchase price.
Some city center Birmingham postcodes can earn landlords between 7-10% gross rental yields according to data, with large areas of Greater London currently returning an average of less than 3.5%. London’s low returns come because while rents are high, properties in the capital are very expensive.
Birmingham has much to be proud of as it continues to be known as one of the most thriving cities in the UK and is admired for its great central location. It attracts millions of people each year showing itself as a great city to study, work and live. More and more overseas students and young working professionals are choosing to settle in Birmingham as it offers a vibrant lifestyle along with affordability and exceptional transport links to the rest of the UK and beyond. Living in the urban city centre is becoming increasingly popular allowing the rental market to thrive, attracting more buy to let investors to Birmingham. The city centre in particular, provides landlords with strong yields and little worry as to whether their property will let.
Birmingham’s New Street is the business rail interchange outside of London. It is also the center of the National Express bus network and has its own international airport, which is served by major airlines such as Emirates, providing connections to New York, Amsterdam, Paris and many more popular destinations.
Birmingham’s development schemes are attracting new companies into the city, enabling Birmingham to further build on its reputation as a leading competitor amongst major European cities. The recently opened library of Birmingham (largest in Europe) and the development of Grand Central are providing a solid foundation for Birmingham to become the business center of the future.
Over the next few years Birmingham will see significant investment into infrastructure projects, making it an ideal time to consider Birmingham as an investment potential.
During the Real Estate and Investment Exhibition (11-16th April, Kuwait International Fairs Ground, Mishref, Hall 8) Top Real Estate Group will be showcasing Seven Capitals latest developments. A selection of 1, 2 and 3 bedroom properties will be available across Birmingham, with property prices starting as low as £90,000. Down payments are 30% upon exchange and 70% due at completion, with up to 8% yields. Projections show as much as 20-25% increases in property values during the construction phase, many to be completed in 2017.
John Treacy, Global sales manager of Seven Capital, will also be present in Kuwait to answer any questions you have during this time.