A Booming Birmingham
Edifice Invest discusses a booming Birmingham and the period of significant change the UK is currently undergoing. We discuss the growing sense of optimism across the West Midlands region which is critical to how investors turn uncertainty into success.
With two new HS2 stations being built in Central Birmingham and nearby Solihull, the West Midlands city has seen a surge in regeneration projects, stimulating housing schemes, office developments and connectivity projects across the region.
Despite the negative outlook on the UK caused by the vote to leave the European Union in 2016, nearly 2 years later and the balance has shifted. In fact, the West Midlands saw workforce jobs increase by 110,000 over the year to June 2017, the biggest rise in the UK by some margin. This chimes with recent data that shows the number of active businesses in Birmingham was up by 13.5% on 2016 levels, three times the UK growth rate.
So why is Birmingham Booming?
Well, with the UK’s strongest economy outside of London, Birmingham is benefiting from remaining one of the ‘youngest’ major cities in Europe. Some 46% of the population is aged 30 or under, and this trend has fuelled a change in living habits with the majority of households in the city centre in the private rented sector according to Knight Frank analysis.
A major boost to the city, Birmingham was announced as the host for the 2022 Commonwealth Games. This major sporting event will generate an estimated £750 million boost to the economy with the number of jobs and tourists expected to increase significantly.
Aside from Europe’s largest infrastructure project worth £56 Billion, HS2, a number of key investment projects have also helped fuel the ‘Birmingham Boom’. The former home of Birmingham’s wholesale markets, Birmingham Smithfield is now a £500-£1000 million development which will see the the area transformed in to a vibrant ‘go-to’ retail and residential destination.
The £700 Million Paradise development is well underway with the first building set to be finished by 2019. This project will open the gateway between Birmingham’s Westside area of the city and the new Arena Central Development. PwC, one of the UK’s biggest financial services firms has already agreed a pre-let for One Chamberlain Square.
How can investors take advantage of the Birmingham Boom?
Now is the perfect time for investors to start investing in Birmingham. For many years, London and Manchester have been at the forefront of Property Investment but as we have explained in our blog post, this is starting to change and with a growing young population and a booming economy, Birmingham is the perfect investment opportunity offering up to 7% net returns per annum.
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