New build house prices in Britain’s second largest city expected to increase by 15.9% by 2024; high-speed railway network, HS2, and relocation of international organisations from London resulting in strong yields for Birmingham city properties of 6% and 8.9% for one and two-bedrooms, respectively
Leading international property company, Chestertons MENA, will be targeting Middle East-based investors with the launch of a new development in one of Birmingham’s most sought-after locations at this year’s International Property Show, taking place from 26-28 March at the Dubai World Trade Centre.
Snow Hill Wharf, developed by the Berkeley Group’s newest brand, St Joseph, comprises a total of 406 luxury apartments with 34 one-bedroom and 99 two-bedroom units available during this second sales phase.
Birmingham is one of the best-connected cities in the UK, thanks to AED14 billion of investment in transport infrastructure which includes the forthcoming high-speed railway network, HS2, which will cut journey times to London to just 49 minutes when completed in 2026. The new high-speed network will link Manchester and other Northern Powerhouse cities as part of the UK Government’s strategy to unlock the potential of the Northern England economy.
Further infrastructure redevelopment has taken place at Birmingham’s New Street Station, the Metro network expansion and the upgrade and expansion of Birmingham Airport – which is just 15 minutes from the city centre.
Situated in a stunning canal-side location, Snow Hill Wharf is just minutes from the city’s Colmore Business District, which is expected to attract several thousand HSBC and Deutsche Bank employees who have already started relocating to the city from the South following the banks’ decision to relocate back office teams to a more economic location.
Nick Witty, Managing Director, Chestertons MENA, said: “Birmingham is fast becoming a popular property investment opportunity for Middle East investors looking to diversify their UK-based property portfolio. Our most recent research has highlighted yields of 6% being achieved for one-bedroom units and 8.9% for two-bedroom units– which is considerably higher than in London and several other large cities in the UK.
“Strong yield prospects and capital growth has seen property prices in the city increase by 45% in the last decade, with further growth of 15.9% predicted over the next five years, an enticing proposition for many investors,” added Witty.
One of the main reasons for an increase in new build prices is a shortage of residential units in Birmingham. Driving the imbalance is the increasing rate of people moving to the city – in 2018 Birmingham was revealed as the most popular destination for those leaving London.
Tim Ridges, Head of Sales and Marketing at St Joseph, said: “Birmingham’s property market is on the rise. A growing appetite for high-quality homes in the UK’s second city has meant that the sales of Snow Hill Wharf have been exceedingly strong, with the waterside scheme attracting the attention of global buyers.
“The transformation of Birmingham is in full effect. As the city’s skyline evolves, so too will its people, with international companies like HSBC and PwC opening new offices and establishing an era of employment growth and prosperity,” he added.
Chestertons MENA will apply its wealth of experience in the MENA region to target UAE and Middle Eastern investors to showcase the second phase of the newly launched development.
In addition to the high-quality build and design specifications, the apartments enjoy canal-side living ideal for walkers and joggers. Residents have access to exclusive facilities including a residents-only cinema, gym, sauna, steam room, meeting rooms and 24-hour concierge.
Residents will benefit from a range of local amenities including a supermarket, shop and gym while the development is close to Snow Hill and New Street train stations, tram links and the national road network.
Prices start from AED1 million and include a mix of one, two and three-bedroom apartments. The development comprises five buildings within Phase Two including, the Fazeley and Colmore apartments slated for handover in Q3 2021 and Q1 2022, respectively.