As Britain’s largest city outside of London, and one of the youngest in Europe, Birmingham has garnered significant attention over the recent months. 

The number of investments and regeneration developments in the city continue to escalate, and with the most recent announcement that the HS2 project has been given approval, both Birmingham and the wider region are due to receive an additional boost, making the city one of the most popular places to relocate and invest in.

Birmingham-based developer SevenCapital has revealed in a list how the city’s residential market is performing, and which are the top seven places to invest in property in Birmingham.

From the suburbs to city-centre hotspots, the list reveals Birmingham’s top locations ranked according to growth potential, with careful consideration towards current and future demand, affordability and price growth. 

Digbeth is at the top of the list for 2020, due to the potential the one-gritty city holds. SevenCapital director Andy Foote notes: “Whilst the more established central ‘hotspots’ such as the Jewellery Quarter, Edgbaston and Harborne benefit from higher average house prices and marginally higher growth over the past 10 years, there is significantly more space for future growth and regeneration in Digbeth, which is exactly what is planned for the area.”

“Couple that with its lower entry point for buyers and investors, prospects for returns in the future for those who buy now, ahead of the area reaching its anticipated potential look very positive.”

Widely recognised as a creative hub in the heart of Birmingham, the bohemian district is known for its street art such as the curved JFK memorial mosaic. It is also within walking distance of HS2’s Curzon Street Station, the current Moor Street and New Street stations, as well as the city centre’s shopping area and its Creative Quarter. 

The Times has also nicknamed Digbeth the “coolest place to live in the UK”, and is home to over £2 billion in planned development projects over the years to come – one of which is the Birmingham Smithfield masterplan and the Connaught Square development. 

According to Foote, the city has been subject to numerous transformation projects over the past decade, with other ongoing significant developments – such as Paradise, Arena Central and the tram network – making Birmingham an attractive and lucrative location for both business and residential life. 

“Global organisations such as HSBC and PwC have already recently rehomed key headquarter operations or increased their head counts within the city’s newest developments, bringing thousands of jobs,” said Foote.

As Birmingham prepares to host noteworthy events such as the 2022 Commonwealth Games, together with the HS2 development and other key projects, the city’s population is expected to balloon to 1.3 million by 2039, boosting demand for residential property.

According to Foote, one particular area which has been regarded as attractive for many is Selly Oak. Widely known across the West Midland city as a student suburb, prices in Selly Oak are towards the higher end, with rental yields at 4%. Nonetheless, demand here remains high due to the close proximity of the University of Birmingham and the Queen Elizabeth Hospital. The area is particularly profitable for those who desire to become student landlords and can adjust to a short-term tenant market. 

“Overall, Birmingham has begun to shine out on a global stage over the past decade, but with recent and future developments, the best is yet to come for the city, so for residential property buyers, there has never been a better time to invest,” Foote added.