Is property in the heart of the Midlands still worth your investment? Read this blog and see whether Birmingham is the right place to invest in property in 2024.
Make no bones about it. Even in these difficult financial times, the Birmingham property market is booming!
After a decade of investments and big businesses moving into town, the city now has more professionals than ever, feeding the economy and taking the second-largest city in the UK to new heights.
But beyond the regeneration and improvements, is Birmingham still the best place for you to invest in property in 2024?
In this blog, we discuss all you need to know about Birmingham property investment with industry insights and the latest housing market expertise.
Investing in Birmingham: What Will Happen to Property Prices in 2024?
Birmingham has been one of the best places to invest in the UK for several years due to the below-average house prices and increasing prestige and regeneration. For example, average property prices in Birmingham have grown almost 40% since 2012, with 2016 to 2020 seeing a 16% growth.
This increase is helping property investors and those who are seeking to make a profit when upgrading to a different property find fruitful investments easier to come by with potential returns on investments (ROI) reaching double-digit percentages.
However, according to Money Week, 2024 predicts average house prices to fall by around 3% before increases in the following years. The reason for this slight decrease is the result of high borrowing costs in the property market.
Therefore, these predictions for 2024 may create an opportunity for property investors to buy property while the prices dip before making a profit in the years after when the market continues to rise again.
Although, Birmingham is still forecasted to see the best house price and rental value growth over the next three years (2023-2025). As with all predictions, nothing is certain. But compared to other major UK cities, Birmingham consistently provides property investors with more bang for their buck.
Is Birmingham Still a Good Place to Invest in Property?
If there ever was a wave to ride in the UK property investment arena, Birmingham’s shores continue to welcome excellent transaction activity, with property investors frequently making a big splash.
Combining property prices and availability with the soaring regeneration of the city makes Birmingham a genuine property investment hotspot. The city was also named the best place in Europe for business investment.
Therefore, you can expect more support and investment in the economy, plus more jobs and development for communities that include the surrounding boroughs.
Alongside the below-average house prices and rising value, to help you clarify why Birmingham is a good place to invest in property, we’ve provided three more reasons:
- Strong Economy
Birmingham boasts the fastest-growing economy in the Midlands and continues to display positive employment figures.
The investment and regeneration over the last decade have attracted numerous young professionals, making the city a thriving metropolis and one of the youngest cities in Europe, with 40% of the population under 25.
Why does this matter? Well, younger people are notorious for pumping their money back into the economy, where it circulates and generates growth and prosperity for businesses and communities.
- Housing Demand
As a bubbling business hub in the West Midlands with various sectors, including retail, leisure, and healthcare, alongside a high student population, Birmingham demands suitable housing for its residents.
This growing population with economic prospects should equate to real estate properties providing positive yields while increasing in value for the future.
- Location, Location, Location
It’s not just its thriving economy and growing population that make Birmingham a real gem for property investors. People and businesses are also very attracted to the city for its location.
As the capital of the Midlands, Birmingham lies relatively central to the UK. So much so that 90% of the UK’s population and businesses fall within four hours of travel time. Excellent transport links across rail, road, and sky create ample opportunities for local or international businesses.
What Does Development Look Like for Birmingham in 2024?
The city has set out an ambitious 20-year vision known as ‘Our Future City: Draft Central Birmingham Framework 2040’. This Birmingham development plan aims to make the city more fair, inclusive, and green with more jobs, better transport options and higher quality, energy-efficient homes.
As with almost anywhere in the world, sustainability and eco-friendly incentives are on the agenda. But beyond just the environment, sustainability is also based on social and economic factors, which Birmingham is committing to till 2040.
In the more distant future, Birmingham’s regeneration will continue with projects including:
- The Paradise City Redevelopment Project
- Eastside Locks
- Birmingham Smithfield
- The Big City Plan
Each Birmingham development project aims to bring more residents to the city with attractive new destinations to visit and enjoy.
Why Vivante Homes Should Be Your Chosen Developer
From property design and build to land acquisition services, Vivante Homes is a forward-thinking, privately-owned property development company based in Coleshill, Birmingham.
We ensure all our bespoke property development services are completed to the highest standards, promising the highest quality construction, materials, and sustainable practices.
With each home we build, we always incorporate the latest building techniques with energy-efficient materials and ensure all structural requirements satisfy your unique interior finishes and designs.
For more details on how we can help turn your dream home or ideal property into a reality, get in touch today and receive a free assessment.
