Birmingham is becoming the new target for overseas property investors as eye-watering prices in London drive rising numbers elsewhere.
Birmingham climbs 14 places up the top European cities for property investment, whilst London moves down the ranks as investors grow wary of high prices.
Birmingham has been heralded as the new darling of overseas property investors looking for bargains as escalating prices in the capital force increasing numbers to explore new options, a report suggests.
The city has climbed 14 places up the rankings of the top European cities for property investment, according to an annual report published by the Urban Land Institute and PwC.
Meanwhile London has moved down five places as some investors grow wary of paying such a high premium for investing in the capital.
‘Regional UK cities, including Birmingham, are pulling in investors who are finding London too hot to handle,’ the report said. ‘The intense competition, big price tags and low yields in London are forcing investors, both domestic and international, to widen their horizons.’
Birmingham is also gaining a reputation for attracting entrepreneurs, with 19,000 businesses created in the city in the past year alone – second only to London. The arrival of HS2 in 2026 will only boost the city further, with the West Midlands estimated to gain as much as £3.1billion in output by 2037.
Property investment across Europe remains a buoyant market despite economic uncertainties, the Urban Land Institute and PwC added.
On the face of it, this is a nice problem to have, but we expect to see prices continuing to rise due to a shortage of assets.
Despite an uncertain economic climate across Europe, investors will have to look beyond the major markets to secondary cities and assets they may not have considered before. This presents both an opportunity and a challenge.’
The Urban Land Institute and PwC interview around 500 industry experts from across the globe for the study, including investors, fund managers, developers, lenders, brokers and consultants.
Jordan Yaffe one of Mayweather Estates directors tells us “We have always backed cities like Birmingham, Manchester and Liverpool because we believe they still offer an excellent opportunity for our investors. There is both strong rental demand and capital appreciation in these areas at attractive entry levels.
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