Rapid economic growth, new infrastructure, and a booming population of students and young professionals is making the UK city of Birmingham a hotspot for investment. Situated in Central England, Birmingham is the second largest city in the UK, with a population of around 1.15 million and a growth rate that is outperforming the national average. But despite its huge population, it is one of the “greenest” cities in the country, boasting 8,000 acres of green space.
Over the past five years, investment has poured into Birmingham. Only last year, it hosted the Commonwealth Games 2022 which generated £778m of investment and considerable public attention. The games attracted over 1 million spectators to the city and were viewed by 1.5 billion people worldwide.
A Growing City
Over 513,000 businesses have a base in the city, including major companies such as Jaguar Land Rover, Deloitte, Deutsche Bank and PwC. In the past four years, the number of businesses in Birmingham has risen by 13%, which is three times the rate of the UK average.
Birmingham is also home to five universities: the University of Birmingham, Aston University, Birmingham City University, Newman University, and University College Birmingham. In total, it boasts a student population of 80,000 and over half of its graduates stay on to work in the city.
With students, young professionals, businesses, and entrepreneurs flocking to Birmingham, the property market is flourishing. More than half (53%) of the population is under 35, and with younger adults more likely to rent than own a home, tenant demand is extremely strong here.
This is only expected to grow with the arrival of the HS2 high-speed railway, which will link Birmingham to London in as little as 45 minutes. As well as injecting £105 billion into the local economy, HS2 is expected to bring a new wave of residents to Birmingham who will be able to easily commute to the capital.
The Future Looks Bright for Birmingham
It comes as no surprise, then, that Birmingham boasts one of the fastest-growing economies in the country. It has also seen the biggest wage growth of any major city over the past five years—driving the average wage up to £34,000.
The West Midlands is one of the only 4 UK regions outside of London expected to match or beat UK GVA growth across 2024-26 (EY). Meanwhile, law firm Irwin Mitchell expects Birmingham’s economy to rise to £29.6bn by the end of the year, which would make it one of the top three performing economies in 2023.
With positive economic forecasts and a number of major developments underway, the future is looking bright for Birmingham and investors would do well to explore opportunities in the market.
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