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Will the Birmingham Commonwealth Games Boost Property Prices?
This incredible 12-day event will shine a limelight on the Midlands because the Birmingham Commonwealth Games will be the most significant event the West Midlands has held. The UK has hosted the Games four times in the cities of; Glasgow, London, Manchester and now Birmingham.
The Commonwealth Games will positively influence the economy and nearby property prices. Furthermore, research shows that property prices rise by 14.9%, on average, in any hosting city. According to the Commonwealth Games Federation, the event is anticipated to uplift the local economy by a phenomenal £1.2bn!
It is proven that any city hosting the Games witnesses significant capital appreciation of the local property market, with long-term benefits. The Commonwealth Games will boost the tourism industry by a further 25%, as shown in the Commonwealth Games Value Framework Report, created by PwC.
Manchester accommodated the Commonwealth Games in 2002, and before the Games began, the city carried out an astonishing amount of regeneration. Manchester also set a regional record of welcoming 85 million visitors, generating an eye-watering £2bn from tourism. The vibrant city is still benefiting from the success of the Games. Prices within the five years of hosting the Commonwealth Games inflated by 140%, according to data from the Land Registry. As a result of the event, there was an upsurge in high-paying job opportunities, and the city also witnessed a 23.5% decline in unemployment. Fast forward to now, the city is still receiving tremendous investments for redevelopment.
Games to Intensify Current Supply & Demand Imbalance
Birmingham is benefiting from the significant sums of investments in the city and continues to successfully deliver regeneration projects. The Birmingham Commonwealth Games will further reinforce the city’s position as the financial powerhouse in the Midlands.
The Commonwealth Games will enormously strengthen the local and regional economies. Consequently, attracting more businesses and professionals to the area. Therefore, inflating rental demand and the need for high-quality housing. These elevated levels of housing demand will cause property prices to follow an upward trajectory due to increasing competition. The supply and demand imbalance across the UK persists. Therefore, competition to secure a property is intense. The shortage of houses available on the market coupled with the rising levels of demand driven by the Commonwealth Games will only intensify this imbalance.
Boosting Employment & Tourism
To help people celebrate the Commonwealth Games to its true potential, the council have awarded £1m worth of funding to 247 projects across Birmingham. The most-anticipated Birmingham Commonwealth Games will be the largest British sporting event following the remarkable London Olympic Games hosted in 2012. The city will welcome an audience of one million people. Furthermore, 1.5bn people from 72 nations may tune in on TV, solidifying Birmingham’s presence globally. On the other hand, once the Birmingham Commonwealth Games end, an additional 950 job posts will be created.
The Games could amplify the population in the city because young professionals may extend their employment contracts or find a permanent job. Approximately 4,500 jobs were created in the event’s run-up. Therefore, this has amplified the need for accommodation. The imbalance will continue as the business sectors expand and the long-awaited HS2 lines come to fruition.
£72m Regeneration of Perry Barr
Since Birmingham’s successful bid in 2017, the city began to deliver extensive regeneration projects and create world-class venues to host the Commonwealth Games, with £788m of public funding. Birmingham is home to some of the world’s most renowned venues. For example, the UK’s largest event space, NEC Arena, Symphony Hall and the Utilita Arena, to name a few. The large-scale projects reshaping the city include; The Big City Plan and the Smithfield regeneration scheme.
In the same way, Perry Barr was redeveloped with £72m to expand the Alexander Stadium, increasing its capacity by 40%. The Alexander Stadium will host the Games and the opening and closing of the ceremony.
So how exactly is Birmingham tackling the chronic housing shortage? Following the Commonwealth Games, Perry Barr will transform into an area with affordable properties, supported by the Housing Infrastructure Fund. This sustainable initiative will convert buildings into homes. Therefore, softening the harsh supply and demand imbalance.
As the athletes take their marks this Thursday, we suggest getting yourself fully versed with Birmingham’s property market as this is not a city you want to miss out on investing in, especially as property prices are still reasonable.
The Birmingham Commonwealth Games will leave a mark on the property market for many years. Property prices in Birmingham are forecast to grow by a minimum of 4.9% annually for the next five years. According to JLL, by 2026, prices will increase by 27%. Therefore, as prices are still below the UK average, it is the best time to invest in a property. At CityRise, not all of our investment opportunities are listed online, so if you would like to enquire about the latest Birmingham investment opportunities, please enquire here.
The Commonwealth Games will attract an influx of tourists, job opportunities, businesses, and investors. Thus, strengthening the economy and property market. The Legacy Fund will inject over £750m, so Birmingham can continue to redevelop after the event. This fund provides support to cities hosting the Commonwealth Games. A phenomenal amount of regeneration is ongoing in Birmingham, all of which will positively affect the property market. This highly sought-after location will also benefit from the Midlands Metro Expansion and the HS2 line, which will enhance accessibility to the area.
To summarise, Birmingham will benefit from:
-Rising property prices
-Increased desirability to live, work and invest
-Strong local and regional economy
-Extensive regeneration schemes
-Growing tourism industry
-Upgrades to key infrastructure
-Faster commutes with improved bus routes and roads
-Extended tram network
-Cycle routes and cycle hiring schemes
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