Being the perfect balance between nature and industry, Sheffield is known for its rich heritage and has evolved to become one of the great economic powers in north England, making it a prime location for real estate investment – and here is why.
1- A FLOURISHING YOUNG POPULATION
Sheffield is residence to two growing and respected universities combining over 63,000 students, Sheffield Hallam and the Russell Group’s University of Sheffield, bringing in a new wave of young individuals every year, all of whom need somewhere to live.
With thousands of students coming to live and study in Sheffield, there is a constant demand for student accommodation, particularly for international students, who make up 16.9% of Sheffield’s student population and contribute £187.2ml to the local economy.
That is why Purpose-Built Student Accommodation (PBSA) can offer lucrative returns on investment, thanks to the fact that the usual macro and micro-environmental forces that impact buy-to-let do not affect students property. It is a sector that can stand on its own and show resilience through a recession.
Student housing applications in Sheffield have consistently been well over demand, and this demand will only continue to increase as its reputation for education continues to grow.
2- A THRIVING MARKET
The university scene is far from Sheffield’s only asset.
Sheffield has a long history but gained international recognition with the Industrial Revolution as one of the finest steel producers. In the modern landscape, Sheffield has emerged as one of the major economic forces in north England.
The city is now looking towards the future and pursuing a new role by experiencing vast regeneration projects, creating a better place to live and work. And, as part of the Northern Powerhouse initiative, there are plans for more investment and redevelopment, which will continue to grow the city into something special.
Furthermore, The Sheffield Economic Plan aims to increase the population by 70,000 by 2025, thereby boosting demand for housing, and this ambition will likely be achieved thanks to the city’s popularity as a place to live and work and its growing status as one of the best cities to relocate outside London.
In addition to creating high demand, a growing population means a very resilient rental market. Low entry prices and huge rental demand make Sheffield one of the UK’s hotspots for investors looking for the highest yields.
3- A STRONG ECONOMY
Sheffield is long renowned for its steel industry, but its economy is also considerably more. Its fast-growing economy is now worth £7bn each year, with a GVA increase of £4bn since 1997, and its economy continues to grow by an average of 5% every year.
Today, Sheffield is one of England’s leading cities for manufacture and engineering, as the home of many of the world’s most innovative engineering organisations such as Boeing, Tata, and Rolls-Royce, and is also quickly becoming a hub for financial services, digital and media industries, environmental technology and energy. An international reputation as a centre for excellence and its cutting-edge service keeps improving.
On top of that, the Sheffield City Region has recently launched a new strategy to further boost its economy. By 2025, it is expected to have 70,000 more jobs, 6,000 more businesses and 30,000 high skilled occupations in the city, as well as a £3bn increase in GVA.
4- A PRIME LOCATION WITH EXCELLENT TRANSPORT HUB
Thanks to Sheffield’s central location in the UK, it is ideally located for travel and accessibility and secures national and international connections.
With four airports within a 30-minute drive, Sheffield is an excellent international hub. Also located next to the M1 motorway network, the city is easy to reach from other major UK cities. Finally, Sheffield’s railway station is well-connected to the rest of the UK and can transport passengers to London in two hours.
Sheffield will also be served by the new HS2 route, further reducing travel times across the country. HS2 combined with the Northern Powerhouse Rail project, journey times to Leeds and Manchester will be just 30 minutes.
5 – A MAJOR REGENERATION PROJECT
To help cope with the city’s rapid expansion, Sheffield is currently undergoing extensive regeneration projects, including high-quality residential developments, as well as effective undertakings in the city centre to build new commerce and entertainment units whilst preserving Sheffield’s heritage.
One of the most significant projects is the Heart of the City, remixing the city centre and creating 1.5 million square feet of new individually designed and repurposed buildings surrounded by enlivened streets and public spaces, including a new urban park for the city.
In addition, Sheffield’s Cultural Industries Quarter has been dedicated to music, film and scientific creation. Once an industrial area, Kelham Island has since evolved into a thriving independent scene with an eclectic mix of cafes, bars, breweries, shops, museums and art studios, making Sheffield a true cultural hub in north England.
A WORD FROM OUR EXPERT:
“Sheffield is a vibrant and attractive city mixing heritage and modernity, and one of the popular choices for students to complete their higher education, but also to live and work afterwards.
With a low entry price compared to other UK cities and a fast-growing population, Sheffield is a prime location for investors seeking the highest yields, ideally located and offering excellent transport services nationally and internationally.”
– Kevin Martin
Growing recognition for its strong development potential and its promising forecast, the future looks bright for Sheffield – all that is missing is you!
Get in touch today to secure your next investment in this vibrant city.