Savvy investors understand that the best opportunities lie in up-and-coming areas and Birmingham’s neighbourhoods are no exception. This historic industrial city in the West Midlands has flourished in recent years, with ongoing revitalisation expanding the city centre and attracting major companies. Not only that but the upcoming High Speed 2 rail project will connect Birmingham to London in just 45 minutes, further elevating the city’s status and attracting renters.
If you’re thinking about investing or constructing in the city for rental purposes, this article details some of the up-and-coming areas that are expected to become in demand. They offer the perfect mix of affordability and growth potential for those who get in early.
Birmingham city centre is undergoing an exciting renaissance led by some of the UK’s top construction companies. Once overlooked in favour of trendier neighborhoods, this business hub is now becoming a highly sought-after area for young professionals to rent.
In recent years, new companies have set up headquarters here and demand is sharply rising among those wanting to be close to work. Although property values have climbed, they are still reasonable compared to other parts of the city. There’s still time to get your foot in the door of this up-and-coming area before prices escalate further.
On the edge of the city centre, Digbeth is a fringe district that has established itself as a thriving hub for renters seeking an urban lifestyle. With its independent shops, pubs and cinemas, Digbeth was dubbed one of the “Coolest Neighbourhoods” in the UK by “The Sunday Times”.
Beyond its artsy veneer is a solid opportunity for investors. Digbeth falls within a targeted Enterprise Zone and is slated for massive regeneration. With major developments and construction in the works, this distinctive neighbourhood offers an exciting chance to invest in Birmingham’s continued growth.
Located to the northeast of Birmingham, Erdington is a well-established area that offers the best of both worlds for renters – easy access to the city centre and a distinct community feel. Erdington is seeing continued investment in local facilities, such as a multi-million-pound leisure centre, making it an ideal spot for newly constructed dwellings.
When it comes to tenants, Erdington appeals to those who want to avoid the high prices of the city centre while still enjoying easy connectivity. From students looking for cheaper rents to professionals who want a hassle-free commute, Erdington offers the ideal balance.
Named after the 500+ jewellery makers that work in its historic streets, the Jewellery District is a sought-after area on the doorstep of Birmingham City Centre. With over 200 heritage buildings, this area celebrates its past while continuing to attract independent businesses. These include globally-inspired eateries, cosy pubs and eclectic cocktail bars.
With its balance of community charm and urban accessibility, the Jewellery District is an alluring spot for renters seeking characterful surroundings coupled with big city conveniences. Prices are still relatively affordable for those wanting to invest or renovate a property and are well below the average UK house price of £291,000.
Birmingham’s Eastside is at an exciting crossroads. As a gateway to the city, it is home to two major universities – Aston and Birmingham City. While the area has long attracted students, Eastside is now seeing a surge of young graduates looking for rentals thanks to the area’s affordable housing.
At the same time, Eastside is undergoing a massive makeover, with Curzon Street Station set to be the main hub of the High Speed 2 project. This will make Eastside a hotspot for London commuters seeking quick and easy access to the high-speed railway. For constructor-investors, Eastside presents an opportunity to get in on the ground floor of Birmingham’s next great neighborhood.
Set amidst Birmingham’s network of canals is Brindleyplace, an upscale neighbourhood that’s renowned for its waterfront bars and restaurants. Its canalside office spaces are home to big-name companies while the area’s recreational spaces make it a highly desirable place to rent.
Brindleyplace has already benefited from long-term investments and revitalisation efforts through the “Big City Plan”, which launched in 2010. In the coming years, demand for housing in this relatively new area is only expected to increase as Birmingham residents seek a better work-life balance and inviting outdoor living spaces.
Invest in Birmingham
When it comes to UK property hotspots, Birmingham is a prime example. This well-connected metropolis is an economic powerhouse and the upcoming High Speed 2 project will only amplify its pulse. Businesses are flocking to set up shop, wages are rising steadily and property values continue their upward trend. As more and more people move to the city, an undersupply of housing will make Birmingham ripe for construction investors.
If you’re looking to establish a rental property or development in Birmingham, you can get an idea of what landlords are making on their investments at Rentola website. This trustworthy platform boasts a huge range of properties to rent in Birmingham, including in the city’s up-and-coming areas. Registered users can search Rentola based on location and number of bedrooms, allowing you to compare current construction costs with projected rental returns. Currently, a two-bedroom property in Birmingham earns landlords around £1,500 per calendar month while four bedroom properties bring in just over £2,000.