Authored by the expert who managed and guided the team behind the United Kingdom Property Pack
Yes, the analysis of Birmingham's property market is included in our pack
What is happening in Birmingham’s real estate market? Are prices on the rise or decline? Is the city still attracting attention from investors? How are local government policies shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Birmingham. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring Birmingham’s real estate market daily. That’s why we’ve crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we’ve missed the mark or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
1) City center properties will attract international buyers for their investment potential
International buyers are zeroing in on Birmingham's city center properties for their promising investment potential.
Over the past five years, property prices in Birmingham's city center have climbed by 26%, with the average price hitting £206,000 by October 2024. This upward trend is a beacon for investors, hinting at continued growth in property values. The city center's appeal is not just about rising prices; it's about the vibrant lifestyle and economic opportunities that come with it.
Rental yields in Birmingham's urban areas are another draw. In hotspots like Digbeth and Harborne, investors are seeing yields of 6.5% and 6.9%, respectively, compared to the city's average of 4.8%. These figures make city center properties a magnet for those looking to maximize their returns. The buzz around these areas is palpable, with a mix of cultural attractions and a young, dynamic population driving demand.
The city center is also buzzing with new developments like The Colmore and SETL, which are catching the eye of both local and international investors. These projects are not just buildings; they're part of a broader transformation, supported by government efforts to boost infrastructure and amenities. This makes the city center a hotbed for investment, with a future that's as exciting as it is lucrative.
Sources: Track Capital, Property Investments UK
2) City center rents will rise as demand for urban living grows
Rents in Birmingham's city center are on the rise as more people are drawn to urban living.
Over the past few years, average rent in Birmingham jumped by 25.2%, reaching $1,294 monthly. This trend is expected to continue, with a further increase of 22.2% by 2027. The city's growing appeal is largely due to its vibrant lifestyle and job opportunities.
Birmingham's population is booming, projected to hit 1,240,000 by 2030. A significant chunk of this growth comes from young people, with 43% of residents aged between 20 and 35. This age group loves city life, leading to more single-person households and young families settling in the city center.
The job market in Birmingham is thriving, especially in finance. The city is a top spot in England for financial jobs, drawing in many graduates. With 265 financial institutions and a new Goldman Sachs office, job opportunities are set to soar, pushing up demand for city center housing.
People are also flocking to Birmingham for its lifestyle perks. As the country's 'second city' after London, Birmingham offers a wealth of amenities and entertainment. This is evident in the high occupancy rates of 94% in city center apartments, even as the number of units increased.
With significant investment and redevelopment, Birmingham is becoming a hotspot for urban living. The city's transformation is attracting more residents who want to be close to the action, further driving up demand for city center properties.
Sources: Joseph Mews, Real Wealth, Buy Association Group
We have made this infographic to give you a quick and clear snapshot of the property market in the UK. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Student accommodation rents will increase as demand grows with a rising student population
Birmingham is buzzing with students, with over 80,000 attending its universities.
This influx has created a strong demand for rental properties, and with the city's population expected to hit 1,240,000 by 2030, the need for housing is only going up. Students are finding it tough to secure places, as existing accommodations are often fully booked.
The shortage is real, with a gap of 371,763 student housing beds expected in 2024, and it's projected to widen to 621,373 by 2026. This mismatch between supply and demand is pushing rents higher.
In popular student areas, the average rent has jumped by 5.5% from 2023, now sitting at £990 per month. This reflects the intense competition for housing in the city.
With around 43% of Birmingham’s population aged 20–35, they make up a whopping 60% of the rental market. This age group is a big part of the demand for student accommodations.
As more students flock to Birmingham, expect rents to keep climbing, driven by the growing student population and limited housing options.
Sources: Confused.com, HEPI, Birmingham Homebuyer Group
4) Foreign buyers will increasingly target Birmingham’s residential market for its affordability compared to London
Foreign buyers are showing increased interest in Birmingham's residential market, and one of the main reasons is its relative affordability compared to London. In recent years, London property prices have been on a rollercoaster, especially in 2023 when mortgage rates spiked. Although prices have somewhat recovered, they are still expected to grow at a slower pace than other regions in the UK.
In contrast, Birmingham offers a more affordable option. For example, in January 2025, the average sold price for a 3-bedroom house in Birmingham was £277,127, which is significantly lower than in London. Even though Birmingham's property prices have grown by 66% over the past decade, they remain much more affordable than those in London.
Moreover, Birmingham has been attracting foreign direct investment, making it an appealing destination for international investors. This trend is likely to continue as the city combines affordability with growth potential. Surveys have also shown that foreign buyers are increasingly interested in UK cities outside of London, with Birmingham being a top choice.
Sources: MoneyWeek, Birmingham Homebuyer Group, GetAgent
5) Student accommodation yields in Birmingham will increase as the student population grows
Student accommodation yields in Birmingham are set to rise as the student population continues to grow.
With more students enrolling at Birmingham's universities, like the 38,820 students at the University of Birmingham and 35,405 at Coventry University in the 2022/23 academic year, the demand for student housing is on the upswing. This surge in student numbers is a clear signal that the need for accommodation is increasing.
Looking at the bigger picture, Birmingham's population is on a growth trajectory, expected to climb from 1,141,400 in 2018 to 1,230,000 by 2038. This population boom will naturally lead to a higher demand for housing, including student accommodation. The number of households is also projected to rise, from 422,500 in 2018 to 442,500 by 2028, further emphasizing the need for more housing options.
Investors are taking note of the student accommodation shortages in Birmingham, which highlight the potential for higher yields. As demand for student housing increases, rental prices are likely to rise, offering better returns for those investing in this sector.
Interestingly, many students prefer private accommodation over university-provided options. This preference can drive up demand and prices in the private market, making it a lucrative opportunity for investors.
With these factors in play, Birmingham's student accommodation market is poised for growth, offering promising returns for savvy investors.
Sources: Statista, Birmingham City Council
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6) Birmingham’s property prices will grow moderately as demand exceeds supply
Birmingham's property market is set for moderate growth as demand outpaces supply.
The city's population is on the rise, expected to hit 1.24 million by 2030, which naturally increases the need for housing. More people means more homes are needed, whether for rent or purchase, and this demand is pushing prices up.
Birmingham's economy is booming, creating new job opportunities and drawing even more people to the area. This influx of newcomers is adding to the housing demand. Between 2023 and 2027, house prices in Birmingham are expected to grow by 19.2%, outpacing the UK average.
However, there's a snag: Birmingham is running out of land for new housing projects. The city struggles to meet its target of 7,000 new homes each year, which keeps the market competitive and prices on the rise.
With limited space for new developments, the housing market remains tight. This scarcity of available homes is a key factor in maintaining pressure on property prices, contributing to their steady growth.
As demand continues to exceed supply, Birmingham's property market is likely to see ongoing moderate growth, making it an attractive option for potential buyers.
Sources: Birmingham Homebuyer Group, Buy Association Group
7) Birmingham’s rising student numbers will boost demand for rentals near universities
The city's growing student population is driving up demand for rental properties near universities.
In the 2022/23 academic year, Birmingham and the West Midlands Metropolitan County had about 183,720 students enrolled at universities. This includes a large number of both undergraduate and postgraduate students at the University of Birmingham.
Reports have highlighted a student housing shortage in Birmingham. In 2023, only 107 student residential units were completed, while plans are in place to deliver 1,562 student beds between 2024 and 2026. This gap between demand and supply naturally boosts the need for rental properties.
The University of Birmingham is expanding, with new facilities in the works, which suggests a growing student population. This expansion is likely to attract more students, increasing the need for nearby rental accommodations.
Significant investment in student accommodation developments is underway, with three new residential schemes starting construction in 2023. This highlights the anticipated demand for student housing.
Sources: Statista, Deloitte, Wikipedia
8) Foreign investment in Birmingham's new-build developments will increase
In recent years, Birmingham has emerged as a leading city for foreign direct investment (FDI) in the UK, particularly since 2023. The city recorded 67 FDI projects in that year, setting a record for the highest number of projects managed by any city outside London in the last decade. This success highlights Birmingham's growing appeal to international investors.
One of the key reasons for this rise in foreign investment is the affordability of Birmingham's property market. Average property prices in Birmingham are significantly lower than those in London, making it an attractive location for international buyers. This affordability, combined with strong rental yields and potential for capital appreciation, has greatly benefited the property market.
Additionally, the West Midlands Growth Company has implemented initiatives such as the Global Growth Programme to attract foreign investment. These efforts have helped create thousands of new jobs, further enhancing Birmingham's appeal as an investment destination. Infrastructure developments, like the expansion of Birmingham Airport, have also boosted the city's connectivity and appeal to investors.
Moreover, local developers are actively engaging in international marketing campaigns to attract more foreign investors. These efforts are aimed at showcasing Birmingham’s potential and stimulating the city’s economy. The positive media coverage of Birmingham as an investment destination has further enhanced its appeal to international investors.
Sources: Greater Birmingham Chambers, Prosperity Wealth, Evening Standard
We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Investors will focus on Aston due to upcoming regeneration projects
The Aston area in Birmingham is catching the eye of investors due to some exciting regeneration projects. Back in 2023 and 2024, there was a significant push to improve infrastructure and transport links, with a £200 million fund from the West Midlands Combined Authority. This fund aimed to build 12,000 homes and create 5,000 new jobs, focusing on areas like Aston.
Moreover, the government allocated funding to transform Aston into the city's Advanced Manufacturing Hub. This initiative is expected to create 3,000 jobs and redevelop 20 hectares of land, making it a hotspot for companies in the automotive sector. Such projects are supported by local council announcements, emphasizing economic regeneration and job creation.
In addition to these efforts, media coverage has been highlighting Aston's potential to attract new businesses and residents. Reports from real estate analysts have also predicted growth in Aston, driven by these ongoing regeneration efforts. The involvement of private developers and partnerships with agencies further boosts the area's appeal.
Sources: Birmingham News Room, WMCA News, Shepcom
10) Demand in Selly Oak will increase as the University of Birmingham expands its facilities
The University of Birmingham is expanding, and this is boosting demand in Selly Oak.
In 2023, the University announced a £50M investment to build a net zero carbon smart building for the Birmingham Energy Institute. This is part of their plan to create a 'living laboratory,' which is expected to attract more students and staff to the area.
They're also working on the Birmingham Health Innovation Campus, which will make the Midlands a leader in Life Sciences research. This campus will have research facilities, leisure and retail spaces, student accommodation, and better highway routes. These developments are set to draw more people to Selly Oak, increasing demand for housing and local services.
Rental prices in Selly Oak are climbing, with rooms in house shares averaging £400-500 per person per month and one-bedroom studios around £650-700. This trend shows the area is becoming more popular, especially among students who want to live near the University and city center. The student population in Selly Oak is growing, driven by the University's expansion and student-friendly amenities.
The University of Birmingham is partnering with local developers like Bruntwood SciTech to create more student accommodation. This collaboration indicates a commitment to meeting the housing needs of the increasing student population, making Selly Oak even more appealing for students and staff.
With these expansions and partnerships, Selly Oak is poised for a rise in demand as the University of Birmingham continues to grow its facilities.
Sources: University of Birmingham News, Split the Bills, University of Birmingham Health Innovation Campus
11) Luxury rental prices will dip slightly as renters look for cheaper options
In recent years, we've seen a noticeable shift in the rental market, particularly in Birmingham. While the overall rental market has been growing, luxury rental prices are expected to see a slight decline. This trend is largely driven by renters seeking more affordable options.
One of the main reasons for this shift is the rising cost of living and inflation. Even though Birmingham's cost of living is lower compared to other major UK cities, it still poses a significant expense for many households. As a result, renters are becoming more cautious about their housing choices, often opting for more budget-friendly options.
Additionally, the impact of remote work has given renters more flexibility in choosing where they live. This newfound flexibility allows them to consider more affordable areas, reducing the demand for luxury rentals. Economic forecasts also predict a slowdown in high-end rental demand, further supporting this trend.
Sources: RentCafe, Buildium, Birmingham Homebuyer Group
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12) Birmingham will see rising demand for city center apartments as young professionals move in
In recent years, Birmingham has become a hotspot for young professionals, largely due to the booming tech sector. Back in 2021 and 2022, the tech industry in the West Midlands, especially Birmingham, was the fastest growing in the UK. By 2023, venture capital investment in Birmingham's tech startups had more than doubled compared to previous years, making it an attractive destination for tech-savvy individuals.
Moreover, major companies like HSBC, Goldman Sachs, and PwC have set up operations in Birmingham, creating more job opportunities and increasing the demand for housing. The relocation of these big names has significantly boosted the city's profile, drawing in more young professionals looking for career growth.
Another factor is the affordability of living in Birmingham compared to other major UK cities like London and Manchester. The city offers a variety of rental properties at more reasonable prices, allowing young professionals to enjoy a higher quality of life with more disposable income for leisure activities.
Additionally, Birmingham's vibrant social scene, with its world-class restaurants, bars, and cultural festivals, makes it an appealing place for young professionals. Areas like the Jewellery Quarter and Digbeth are particularly popular for their trendy nightlife and cultural attractions.
Demographic trends also show that around 43% of Birmingham’s population is aged 20–35, making up 60% of the rental market. This indicates a significant influx of young professionals moving to the city, further boosting demand for city center apartments.
Finally, the development of coworking spaces and innovation hubs in the city center supports the growth of the tech sector and attracts young professionals who are part of the startup ecosystem. These factors combined make Birmingham an increasingly attractive destination for young professionals.
Sources: Digital Birmingham, Scriven, Birmingham Homebuyer Group
13) Suburban rental yields will dip slightly as renters choose city living
In Birmingham, city-center living is becoming increasingly popular.
Young professionals are flocking to areas like Southside Birmingham, where rents are notably higher than in suburbs like Homewood. This trend highlights a growing preference for the vibrant city lifestyle, complete with bustling nightlife and a thriving arts scene. Digbeth, for instance, is now being compared to trendy urban spots like Camden.
The appeal of city living is particularly strong among those aged 20 to 35, who make up a significant chunk of the rental market. This demographic is drawn to the convenience and excitement of urban life, with public transport improvements making it easier than ever to live without a car.
As more people choose the city over the suburbs, suburban rental yields are expected to dip slightly. The allure of city-center amenities is hard to resist, especially for those seeking a dynamic lifestyle.
For potential property buyers, this shift means that investing in city-center properties could be a smart move. The demand for urban living is strong, and rental prices in these areas are likely to remain robust.
With Birmingham's city center becoming a hotspot, the rental market is poised for continued growth, making it an attractive option for investors looking to capitalize on this trend.
Sources: Bham Now, Redmayne Smith, Norada Real Estate
14) Suburban property prices may dip slightly as buyers favor city center locations
In recent years, we've seen a noticeable shift in where people want to live, especially in places like Birmingham, England. Many folks are now choosing to live in city centers rather than the suburbs. This change is partly because remote work has become more common, allowing people to live closer to city amenities and social spots without worrying about a long commute.
Another reason for this trend is the growing population in Birmingham. More people are moving to the city, which naturally increases the demand for housing in urban areas. Younger people, in particular, are drawn to city centers because they want to be near work, social venues, and other amenities. This group makes up a large part of the rental market, showing a clear preference for city living.
Additionally, Birmingham has been improving its public transportation and infrastructure, making city life even more appealing. With better transport options, living in the city center becomes more convenient, attracting more residents. Investors are also noticing this trend, as city center properties offer higher rental yields, making them a more attractive investment.
Sources: Joseph Mews, Birmingham City Council, City of Birmingham
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UK. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) City center rental yields will rise as more young professionals opt to rent over buying
Rental yields in Birmingham's city center are set to increase as more young professionals opt to rent rather than buy. This trend is largely driven by the rising demand for rental properties, fueled by the influx of young professionals moving to the city for job opportunities in thriving sectors like tech and finance.
The city's population is notably young, with around 43% aged between 20 and 35, and this demographic makes up a significant portion of the rental market. Many young professionals prefer renting over buying due to the flexibility and mobility it offers, allowing them to move easily for career opportunities or lifestyle changes.
Additionally, the affordability gap between renting and buying in Birmingham makes renting a more attractive option. The average salary to house price ratio is lower than in many other areas, making it financially sensible for young professionals to rent. Furthermore, the limited availability of affordable housing for purchase in the city center pushes more individuals towards renting, thereby increasing rental yields.
Sources: Joseph Mews, Weber Mortgage, Select Property
16) Luxury rental yields will slightly decrease as high-end renters become more budget-conscious
High-end renters are becoming more budget-conscious, leading to a slight dip in luxury rental yields.
In places like Birmingham, the rising cost of living is a big factor. Renters are feeling the pinch from increased utility and maintenance costs, making luxury properties less appealing. Energy bills and water rates are climbing, pushing renters to rethink their budgets and consider more economical options.
There's a growing interest in mid-range rental properties as people seek affordability. This shift is partly due to stagnant or declining wages in sectors that usually employ high-end renters. As a result, luxury property owners are facing more competition and are offering incentives to attract tenants, which affects rental yields.
Luxury property owners are now in a position where they need to offer incentives to attract tenants. This is a direct response to the increased competition and the changing priorities of renters who are looking for more value for their money.
In the current market, luxury rentals are less attractive to those who are tightening their belts. This trend is reshaping the rental landscape, with more people opting for properties that offer a balance between cost and comfort.
As high-end renters become more budget-conscious, the luxury rental market is evolving to meet new demands. Property owners are adapting by adjusting their strategies to maintain occupancy and rental yields.
Sources: Track Capital, Buy Association Group
17) City center apartments will become more popular for their closeness to work and leisure activities
City center apartments in Birmingham are becoming increasingly popular, and there are several reasons for this trend. One of the main factors is the rising demand for urban living. Over the past decade, property prices in Birmingham have increased by 66%, and they are expected to rise by another 19.9% from 2024 to 2028. This shows a strong interest in city-center properties, driven by a competitive market and the potential for strong rental yields.
Another reason is the significant investment in city center infrastructure and amenities. Developments like SETL in the Jewellery Quarter and Paradise are transforming Birmingham into a connected hub with new amenities and transport links. For example, the Paradise development will include a residential skyscraper, restaurants, bars, and a premium hotel, making the city center more attractive to residents.
The influx of young professionals is also contributing to the popularity of city center apartments. With around 43% of Birmingham's population aged between 20 and 35, this demographic makes up a large portion of the rental market. The relocation of major businesses like Goldman Sachs and HSBC to Birmingham is expected to attract even more professionals, increasing the demand for city-center living.
Sources: Joseph Mews - Birmingham Property Price Forecast 2025, Joseph Mews - New Developments in Birmingham 2025
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.