Birmingham is a major UK city, located in the centre of the country, providing pivotal direct access to all significant areas of the UK.
Named the UK’s ‘second city’, Birmingham is currently embarking on a major growth trajectory, echoing the transformative journey Manchester experienced 5-10 years ago. While the capital remains a trophy asset and desirable second home for many, London is no longer considered the best investment for UK property investors, with the market remaining stagnant or declining in recent years.
Many UK property investors are now looking towards one of Europe’s strongest university cities, Birmingham, for investment, and it’s clear to see why.
A look back at Manchester
Manchester’s skyline has evolved drastically over the past few years, transforming districts into ‘skyscraper cities.’ The regeneration in the city centre has seen major funding into community focused areas, developing 24/7 destinations such as Circle Square – a mixed-use community made up of residential, commercial, office and leisure space.
Manchester’s transport has also seen major changes in recent years, through a metro expansion and Manchester airport’s significant terminal upgrades. Due to major regeneration projects, an increase in blue-chip employers, a growing talent pool, accessible transport and world-class education, Manchester’s rental population is booming.
Manchester’s population surge has firmly placed this city on a global stage. Major businesses have relocated to Manchester, including Puma, Rolls Royce, PwC and Deloitte, to name a few. The Northern city is also ‘stealing the show’ from London, as the prestigious Brit Awards make the move to Manchester.
This positive growth in Manchester has led to strong investor confidence, underpinned by several key themes: regeneration, population, education, transport and employment. Key themes that are increasingly synonymous with Birmingham.
Birmingham’s rapid growth
Birmingham, named the UK’s second city, has historically been considered a runner up to Manchester for investment. However, thanks to major investment and backing by major players, including His Royal Highness, the King, Birmingham is quickly establishing itself as a top European investment hotspot.
Comparable to Manchester’s evolution several years ago, Birmingham is at the beginning of its regeneration journey, with exciting growth projections to further affirm the city as an investment powerhouse.
The West Midlands region is targeting a staggering £19 billion in regeneration projects in the city, across a variety of transformative schemes including Paradise Birmingham, Smithfield Birmingham, Central Edge, and Arden Cross.
These significant projects are drawing in an abundance of global businesses, with EY, PwC, Deloitte, Goldman Sachs, HSBC and the BBC all holding major offices in Birmingham city centre.
Birmingham also boasts a 49% graduate retention rate from its five universities including Russell Group, The University of Birmingham, with major blue-chip employers in the city offering young professionals ample employment opportunities. This is also leading to a large population increase, which has led to a significant supply and demand imbalance. Birmingham is required to build more homes than any other UK city (127,000) due to the immense demand to live in this thriving city.
HS2, the £106 billion bullet train is also boosting Birmingham, as this upgraded transport will provide a direct link to the capital in under an hour. Birmingham is set to be transformed into a commuter hotspot for high-earning Londoners overnight, further contributing to Birmingham’s growing appeal.
A mirrored journey
The key themes that have led to the success of Manchester, are echoed strongly in Birmingham.
Both Manchester and Birmingham:
- Feature major transport links including direct trains to London and flights to Shanghai, Dubai and Hong Kong
- Are leading the UK residential forecasts for sales price and rental growth
- Have received significant investment into regeneration projects
- Boast incredibly high graduate retention rates
- Are home to multiple universities including Russell Groups, The University of Birmingham and The University of Manchester
- Are cultural hubs attracting a diverse international population of students and young professionals
- Provide a base for a multitude of international blue-chip employers
Manchester was predicted to have incredible growth five years ago, and is now one of the highest performing cities, not only in the UK, but Europe.
Today, Birmingham has a mirrored forecast, as it embarks on its impressive growth trajectory.
| Topic | Manchester predictions 2020 | Birmingham predictions 2025 |
| Annual house price growth | 5.9% | 7.2% |
| Graduate retention rate | 51% | 49% |
| Annual rental increase | 4% | 6.8% |
| Five year population increase forecast | 5% | 6.25% |
Why invest now?
Still at the start of its growth curve, luxury Birmingham property is reasonably priced, creating a unique opportunity for savvy investors. By investing in Birmingham now, at the beginning of its transformation, investors can gain lucrative returns as the city follows a similar growth trajectory to Manchester – a property investment success story.
At Select Property, we have over 20 years experience in developing and sourcing the best property investment opportunities for our global investors. With exceptional investment opportunities in both Manchester and Birmingham, we’d love to help you diversify your investment portfolio to enjoy balanced, stable returns in the UK’s highest performing cities.
Our latest development, Edition Birmingham, offers the highest level of luxury in the city, providing premium amenities rarely seen outside of London. Mirroring the success of Manchester, property in Birmingham is also likely to surge, making the time to invest now. Contact us to find out more about property investment in the UK.