Why Invest in Digbeth Buy-to-Let Property in 2019?
While the wider Birmingham area continues to perform with UK-leading property growth and rental yields, demand for buy-to-let property in Digbeth is increasing and the area is fast emerging as an investment hotspot within this regional core.
Recognised as Birmingham’s most contemporary district, Digbeth was once the industrial heart of the city and has since evolved into the second city’s creative quarter; a hub of culture, innovation and independent business.
Digbeth has all of the qualities that make it a prime location for Buy to Let investments. As a vital area at the heart of Birmingham city centre, Digbeth is much more affordable than neighbouring suburbs. It has experienced incredible property price growth of 401% in the last 20 years, with a bright future and phenomenal developments in the pipeline.
With direct links to key transport hubs and world-class amenities, Digbeth is already achieving some of the highest rental yields in the city – the average apartment delivers a 7.5% yield according to figures from Rightmove.
As an area with a strong background in creative and digital business as well as lasting cultural ties and a long history, Digbeth will play a huge part in Birmingham’s future.
The Benefits of Buy-to-Let in Digbeth
Birmingham is in a ‘golden age of development’ and Digbeth is one of the areas primed for transformation. As part of the wider Eastside and Southside regeneration within the ‘Big City Plan’, Digbeth is re-developing its landscape with new infrastructural improvements and high-quality residential, commercial and leisure spaces.
For Buy-to-Let investors, this regeneration is a clear signpost of Digbeth’s status as an up-and-coming area – a hotspot of tenant demand and investment opportunity in an area that is already over-performing.
Digbeth is also home to the site of The Smithfield Masterplan, which will revitalise Birmingham’s Eastside and Southside quarters. The plan will inject £1.5 billion into the creative district and transform the region into an exciting destination to live, work and play. Over 20 years, Birmingham Smithfield will add £470 million GVA to the local economy and create nearly 3,000 new jobs.
As a once in a generation development, Birmingham Smithfield is a huge draw for the area. From professional residents working in the creative district to shoppers visiting for the excellent retail opportunities, Birmingham Smithfield will put the spotlight on Digbeth and be a huge attraction for those that want to invest in Birmingham.
Home to a young professional community, Digbeth’s demand for quality residential spaces near new, forward-thinking workplaces is unprecedented, contributing to the creative quarter’s boom against a backdrop of fashionable culture and advanced redevelopment.
69% of Londoners moving out of the city and choosing Birmingham are under-30, contributing to the second city’s status as the youngest city in Europe. It’s this young, ambitious community that is helping Digbeth shape itself as one of Birmingham’s Buy-to-Let hotspots, driving the property market and property investment in the area.
Rich in independent culture, retail and leisure, Birmingham consistently outranks other major UK cities when measuring affordability, employment opportunities and quality of life. With the arrival of the HS2 connection, direct access to the capital will make Birmingham an even more attractive choice for London commuters seeking the vibrancy that Birmingham, and Digbeth, can provide.
While the Industrial Revolution has given way to digital business in Digbeth, there’s no doubt that the employment opportunities for creative professionals are exceptional, putting buy-to-let property in Digbeth firmly in demand.
As part of the Eastside regeneration, Digbeth is the site of two major infrastructure developments – the HS2 interchange Curzon Street Station and the Midlands Metro expansion. It also sits within walking distance of Birmingham New Street, a major travel hub that opens up rail links to the wider UK.
The regeneration of Curzon Street Station and subsequent connection with the HS2 line will put London and Birmingham just 49 minutes away from each other, effectively turning Birmingham into a commuter destination for those in the capital.
This will deliver never-before-seen connectivity for Birmingham, especially when the second city’s affordability compared to the capital is taken into account. For London renters, Birmingham will be a tempting prospect as the capital will be accessible for work in under an hour.
For the wider West Midlands, the Midlands Metro expansion is a huge show of confidence in the region. Offering direct links to Edgbaston, the NEC and Wolverhampton, the next phase of development will also connect the rejuvenated Eastside district to the rest of Birmingham. With plans to expand to the Black Country in future, the Metro expansion is another demonstration of the connectivity the city is driving.
Birmingham is home to over one million jobs and a number of world-class occupiers such as HSBC, PwC and HMRC. With the largest business, professional and financial hub outside of London, Birmingham’s commercial core employs more than 100,00 people and continues to attract the eyes of the world. The ‘Big City Plan’ will also play a huge part in expanding the city core, creating an extra 50,000 jobs for the region and contributing £2.1 billion to the economy each year.
Birmingham’s business district is within walking distance of Digbeth, ideal for young business or finance professionals that want the affordability it can provide without compromising accessibility or quality of amenities. As Digbeth expands, it’s likely that more occupiers will choose the suburb as their home, joining the variety of forward-thinking creative industry names that are already inhabiting the Custard Factory.
For investors considering Birmingham property, it’s important to recognise the strength of the city since the 2016 Brexit vote. Birmingham is leading the country in price growth post-2016 at 16% and is continuing to forecast above-average house price growth.
Digbeth is reaping the benefits of this incredible performance – asking prices last year increased by 38% and the average rent continues to grow beyond the £1,342 it hit in 2016. The combination of affordability, transformative developments and incredible amenities means demand is always increasing within Birmingham, providing property investors with increased capital growth and rental yields.
Buy-to-Let Investments in Birmingham
As a leading property developer in the UK, we understand the potential that an investment opportunity in an up-and-coming area can have. We have several investment opportunities in Birmingham and Digbeth, designed to cater to several different demographics and investment strategies.
Prices from: £179,950
Investors Minimum Deposit: 25%
105 Broad Street is a premium Buy-to-Let investment opportunity on the doorstep of Birmingham’s thriving business hub, well-connected in every direction and designed to offer a unique lifestyle for the professional resident. With a prime location, excellent facilities and panoramic views of a breath-taking skyline, 105 Broad Street reflects its professional surroundings. This is ambitious, refined and contemporary living at the heart of the second city.
Featuring contemporary spaces spread over ten floors, each apartment in 105 Broad Street is a beautiful open-plan living space, with modern fixtures and smart features integrated. Each resident at 105 Broad Street also has access to fantastic amenities including a state-of-the-art gym, 24-hour concierge and dry-cleaning service. Car parking is available for residents, guaranteeing a personal parking space in a great location with direct road access to the motorway.
Prices from: £284,950
Initial Deposits from 10%
Birmingham’s most exclusive luxury residential development, St Martin’s Place is located in one of the city’s most sought-after postcodes, within walking distance of the main professional district. 228 exquisitely designed, spacious apartments come complete with smart features, interiors by A-list interior designer Daniel Gibbons and a welcoming, light ambience that exudes style and sophistication.
What sets St Martin’s Place apart is the services available to all residents from the neighbouring Park Regis Hotel. With an urban spa, food and beverage service, high-quality gym, WiFi lounge and private cinema, as well as a full suite of hotel services such as dry-cleaning and room-cleaning, St Martin’s Place is a landmark residence that offers a truly unique living experience at the heart of the second city.