Birmingham tops UK property league

Birmingham tops UK property league

Birmingham has been ranked as the UKs top city for investment prospects in a new report by Urban Land Institute (ULI) and PwC.

According to the report, the leading European cities for investment prospects in 2016 are Berlin in top spot, followed by Hamburg, Dublin, Madrid, Copenhagen and Birmingham.

Substantial investment into projects such as the HS2 rail line to London reflects a trend seen in a number of European regional centres by offering good value for investors.

Birmingham’s relative value is also bringing occupiers to its office market, with HSBC moving its retail division to the city, taking a 20,000 sq m pre-let at 2 Arena Central in 2015.

In addition, rising rents and a dwindling supply of good quality space have prompted several developers to start building or refurbishing offices.

Neil Rami, chief executive of inward investment agency, Marketing Birmingham, said: "Birmingham has clearly created an environment that international investors are taking note of.

“Our new infrastructure – including a modern train station, tram lines and a future HS2 terminal – places the city at the heart of Europe’s business networks.

“Investors are taking Birmingham seriously because it also offers an outstanding quality of life, ranging from metropolitan city living to its green spaces and exemplary education provision.

“We are working with a growing number of firms based in London, which are seeking to expand outside the capital and understand that Birmingham provides the best environment for their business to grow and where their staff can thrive.

“The need for space in the city, from both companies and their workers, is creating significant levels of demand for office and residential space – meaning that the number and scale of investment opportunities in Birmingham are on the rise.”

Notably, London has slipped from the top ten, suggesting that investors are seeing better growth prospects in regional UK and European cities in the short term.

In the long term, however, the UK capital remains the first choice in Europe for many international investors focused on wealth preservation with liquidity and the scale of the market, together with relatively robust economic performance.

You can view the full report, here.