According to JLL, Birmingham is the most rapidly increasing city in the UK in terms of property prices compared to Manchester and Leeds. The property prices rose by 66 per cent in the last ten years, with the average property price at £228,663 in 2024.
Also, buying off-plan property in Manchester will give investors an opportunity to buy the property at current prices. Market values usually escalate greatly by the time construction is finished.
Birmingham house prices are expected to grow at a rate of 3.7 per annum between 2024 and 2028 and are projected to increase by a total of 19.9 per annum by 2028. This high valuation generates equity for early adopters.
Reduced Cost of Entry Makes Investment Accessible
The developers provide off-plan property in Birmingham at reduced prices to create early cash flow. These discounts normally vary between 5 and 20% lower than the market rates. Therefore, the capital requirements of investors in the market are much lower.
The pay staging system further helps it to reduce financial strain. Buyers use an initial deposit, after which the balance is paid on completion. This structure gives room to raise funds or accumulate more money. Thus, a greater number of investors will be able to engage in the prosperous Birmingham property market.
Strong Rental Yields Drive Consistent Returns
In Birmingham, the average monthly rent is £990, with a growth rate of 5.5 per cent in 2023. Also, the average rental yields in Birmingham stand at 5.21%, which means that the city is among the most attractive buy-to-let locations in the UK. By collaborating with an established property investment company, the investment becomes easier.
The city accommodates large universities that receive thousands of students every year. Moreover, large employers such as HSBC, Goldman Sachs, and PwC set up operations in Birmingham. These aspects guarantee stable pools of tenants among property investors.
Infrastructure Development Transforms the City
Birmingham is remaking its landscape through massive regeneration projects. The Smithfield redevelopment project, with a value of £1.9 billion, will start construction by early 2026 and will ultimately provide more than 3,000 new homes and a new cultural quarter. In the meantime, the rail development of HS2 has been progressing at Curzon Street Station.
These infrastructural developments add value to surrounding properties. Property investment companies around these areas enjoy the regeneration effect. This regeneration impact normally generates a 4.7 per cent house price uplift per year.
Manchester Offers Similar Investment Advantages
Off-plan property in Manchester offers equally positive opportunities to investors. Major media and tech companies are drawn to the city and leave a strong impact on job growth. The current buy-to-let yields in Manchester are between 6% and 7%, and prices of houses in the area have increased by about 75% in the past ten years.
The residential demand is driven by MediaCityUK, NOMA, and the Oxford Road Corridor. Also, the population of Manchester has increased by at least 0.73 per cent over the past four years, resulting in insurmountable demand for rental accommodation. Thus, investors enjoy capital gain as well as good rental collection.
Brand New Properties Minimise Maintenance Costs
New construction implies fewer repairs and lower costs of maintenance in the first place. Off-plan property Birmingham developments comply with the existing building codes and energy conservation provisions. This means that properties use less energy, resulting in lower utility costs to tenants.
Most new construction projects also come with a warranty of structural defects up to 10 years. This security gives investors a sense of tranquillity. Moreover, contemporary fixtures and fittings attract quality tenants who pay premium rents.
Flexible Payment Plans Support Investment Strategies
Developers organise payments to suit investor requirements. In most cases, buyers have to pay 10-20 per cent deposits when exchanging. The rest of the balance is due on completion, which is usually at 18-24 months.
Other developers provide interest on deposited cash, discounted on the final payment. In addition, some developments may be accompanied by rental assurances. A property investment company guarantees definite levels of rental income, whether the structure is occupied or not, during the stabilisation periods.
Supply Shortage Drives Market Dynamics
Birmingham is experiencing a housing undersupply, where the housing delivery is always lower than the demand, causing the housing prices to be on an upward trend. To keep up with demand, the city needs thousands of new residences every year. But the reality of supply is way below this demand.
This imbalance in supply and demand leads to a competitive market. Homes appeal to numerous buyers in a short period. As such, investors who are decisive grab the best off-plan property in Manchester.
High-Quality Tenant Demand Remains Strong
The demographics of the city of Birmingham are conducive to the success of long-term investments. The city is appealing to young professionals during their peak income years. It is estimated that in July 2024, monthly private rents grew by 11.4 per cent to an average of £1,003, indicating that the demand for rental properties was high.
Another large group of tenants are university students. The rate of graduate retention is high because students remain to initiate careers. Also, foreign firms moving to Birmingham come with workers who want good accommodation.
Conclusion
Birmingham is the centre of the transport system in the UK. The city is well linked to London, Manchester, Leeds, and Liverpool through the motorway and the rail. According to JLL research, Birmingham rental growth is expected to increase 18.8 per cent in 2025-2029, much higher than the UK average of 17.1. This forecast is equivalent to an estimated annual growth of 3.5 per cent, and its strategic location enhances the growth potential of the city of Birmingham in the long term.
This growth in capital, plus the high rental, creates incredible investment returns. Verta Property Group focuses on assisting investors in determining the most attractive opportunities for off-plan property in Birmingham. The team carries out due diligence on all the recommended developments.