Birmingham is strengthening its credentials as a major UK property investment destination, with forecasts suggesting it could outperform both London and Manchester on house price growth over the next four years.
A report commissioned by Berkeley and prepared by PriceHubble suggests the city is benefiting from a combination of rising property values, growing rental demand and significant infrastructure investment.
According to the research, Birmingham is expected to deliver proportionally stronger house price growth than both London and Manchester by 2030, while maintaining a lower average purchase price.
The report also points to the city’s longer-term performance. Average new-build prices in Birmingham have increased by 57% over the past decade, compared with 25% in London over the same period.
The rental market has also remained robust, with average rents rising by 37% over the past five years. PriceHubble forecasts a further 14% increase by 2030. Apartment yields have also strengthened, rising from 4.5% in 2021 to 8.1% in 2026, which Berkeley said compares favourably with both London and Manchester.
The findings come as Berkeley continues work on its Glasswater development in Birmingham’s Eastside, which forms part of the city’s £4 billion Knowledge Quarter regeneration programme.
The scheme is also expected to benefit from the arrival of HS2, with the future Curzon Street station located nearby. Berkeley highlighted estimates that the project could generate a £10 billion economic boost for the West Midlands by 2034 and support almost 31,000 jobs.
The report also noted that the West Midlands secured 130 foreign direct investment projects during 2024-25, making it the UK’s leading destination for inward investment outside London.
Stephen Kirwan, managing director, says: “Birmingham is undergoing a period of sustained transformation, with investment in infrastructure, employment and regeneration driving long-term growth.
“For buyers and investors, the city offers a compelling combination of strong fundamentals, relative value and future potential, which is increasingly positioning it alongside other major UK cities.”
Reece Parkinson, founder and director of Birmingham-based company Swift Property, adds: “The market in Birmingham over the past five years has been phenomenal. We’ve seen huge spikes in demand and significant growth over that time.
“With new developments like Glasswater Locks coming on to the Birmingham scene, there’s been a massive boost to the housing quality in the area. As a result, we’ve seen a wider range of purchases being drawn to the city.
“The high quality and luxury feel of developments like this are significant factors in enhancing the Birmingham rental market and helping the city challenge both London and Manchester.”
Glasswater is a waterside development in Birmingham’s Learning Quarter comprising one and two-bedroom apartments, with resident amenities including a gym, cinema and gaming room, lounge, coffee bar and 24-hour concierge.
