Real Estate Investor Magazine South Africa February/March 2019 | Page 50

UNITED KINGDOM
Why Birmingham is the
Investment Capital of the UK
BY JOANNA DAVIS
I
nvestors across the world would agree that the UK’s prop-
erty market is one of the most stable to invest in and de-
spite Brexit, it looks set to reclaim its position as Europe’s
leading investment market in 2019, particularly with technol-
ogy.1 However, whilst London has historically been the stron-
gest market for investors, over recent years its sky-high prices
and increased cost of living have seen its popularity wane. As
yields and ROI have continued to slump, instead, investors are
looking towards the first cities, such as Birmingham, where
investments are more affordable, and higher yields are far more
achievable.
So what has caused this shift in investor activity towards
Birmingham, and why should more South African investors
be following suit?
Better Value Across the Market
Whilst costs to live and work in London city have skyrocketed
to levels only easily afforded by the very wealthy, Birmingham
in comparison offers a city centre that may be smaller than
London, but offers most of the amenities found in the capital
with a far more affordable price tag. Birmingham is also still
growing, offering room for new business, buildings, people
and sustainable growth, whereas the capital is a much more
saturated market.
Unprecedented Tech Growth
With the UK leading the way for tech investment in
2018, Birmingham has continued to build on its history of
engineering and data sciences, focusing on efforts to grow
across digital technology and increase its value to the overall
economy. This has resulted in winning the bid to trial 5G
technology, with the second city set to host a large-scale test
bed of the revolutionary tech.
Over 100 times faster than 4G, this new technology could
improve public transport, hospitals and emergency services
immeasurably while encouraging start-ups and helping
established businesses evolve and grow.
Great connectivity
Location has always been critical for investors - Birmingham
enviably sits at the very heart of the UK, with all major UK
cities accessible in under two hours. Furthermore, in the past
18 months, works on HS2 - which will slash train journeys to
London to just 49 minutes - have taken major steps forward,
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FEBRUARY/MARCH 2019 SA Real Estate Investor Magazine
meaning the city is another step closer to fast, easy access to
the capital and all major, global business there.
Record levels of inward investment
A combination of this value and the connectivity Birmingham
offers amongst other benefits has attracted big national and
international corporate businesses such as HSBC, HMRC and
PwC to open new headquarters within the city – with HSBC’s
having recently opened this October.
On a global scale, Birmingham has been named the host of the
2022 Commonwealth Games while during 2017 Birmingham
attracted its highest number of FDI projects to date.
Strongest economy outside London
As well as the city’s impressive investment statistics, Birmingham
also has a £24.8billion economy – the strongest outside London
- and is home to the largest business, financial and professional
services (BFPS) hub in the UK outside London. Birmingham
currently employs more than 123,000 people in this sector, and
in the period 2016 to 2022, this is expected to have grown by
19,000 according to the Birmingham Skills Investment Plan.
Demand
Whilst global businesses have undeniably recognised
Birmingham’s huge offering and potential, so have the public.
As London continues to outprice renters and buyers alike, they
are increasingly looking further and further outside the capital
for an equally attractive but more affordable alternative. As a
testament to this, ONS data analysed by Knight Frank recently
revealed that Birmingham topped the list of places in the UK
that welcomed the highest number of people leaving London
in 2017.
This can be attributed to the sheer amount of investment
entering into the city, creating entirely new residential,
commercial and retail spaces while bringing generational
developments to the city. From HS2, Paradise and Arena Central
to Birmingham Smithfield, these future developments will shape
the Birmingham skyline for years to come.
As a major part of Birmingham’s growing landscape,
SevenCapital currently has a number of exciting investment
opportunities across Birmingham, designed to help you reach
your investment objectives going forward.
SOURCE www.sevencapital.com