MARKET INSIGHT
Why Central Birmingham Remains a Prime Target for Property Investors in 2025 and Beyond
August 06, 2025 • Author: Elliot Rowe
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With economic confidence returning and UK property values on the rise again, investors are reassessing where the real long-term value lies. For many, all signs point to Central Birmingham, a city undergoing rapid transformation, underpinned by regeneration, infrastructure investment and some of the best growth forecasts in the country.
A compelling buy-to-let destination, Birmingham’s city centre stands out for its affordable entry‑prices, high rental yields and long‑term growth prospects. As of April 2025, average property values in Birmingham reached around £234,000, up 5.6% year-on-year, outperforming the 3% English average.
Recently revised forecasts from Savills put house price growth in the West Midlands at 27.6% between 2025-2029, again above the national average forecast of 24.5%. Rental yields across the city average approximately 5.2%, while hotspots such as Selly Oak, Jewellery Quarter, Digbeth, Westside and Bordesley Green deliver 6–7.5% yields, especially from student and professional tenants (Investropa).
These strong growth forecasts are also seen in cross sectors such as the logistics and industrial market where take-up of space jumped a whopping 53% year on year in 2024 (Savills), particularly big-box and Grade A space, showing the level of industry demand and the strong fundamentals that underpin Birmingham’s economic growth and thriving jobs market.
Driving demand in the residential sector we can look to Birmingham’s major regeneration projects; HS2’s Curzon Street station, Smithfield redevelopment (£1.9 bn), Big City Plan districts like Eastside and Digbeth and strong population growth projected to reach 1.24 million by 2030 (Birmingham City University). The Big City Plan aims to add 5,000 new homes and 50,000 jobs, expanding the city centre by 25%, no other UK city (apart from Leeds) has ever planned such a scale of city centre expansion.
Centenary Square, located in the Westside district, is central to this urban transformation: it fronts landmarks like the Library of Birmingham and the Westside metro extension, improving transport links and boosting placemaking appeal. Investment around Centenary Square benefits from enhanced connectivity and cultural draw, strengthening demand for high‑end apartments or offices nearby.
Birmingham Buy-to-Let Market Snapshot
| Indicator | Data | Context |
|---|---|---|
| Average Property Value (Apr 2025) | £234,000 | Up 5.6% year-on-year vs. 3% England average |
| Forecast House Price Growth (2025-2029) | 27.6% | West Midlands vs. 24.5% national average (Savills) |
| Average Rental Yield | 5.2% | City-wide average |
| Hotspot Rental Yields | 6% – 7.5% | Selly Oak, Jewellery Quarter, Digbeth, Westside, Bordesley Green |
Data highlights Birmingham’s appeal for investors, combining affordability, high yields, and strong growth forecasts.
Regeneration Spotlight: Centenary Square
One of the most symbolic regeneration zones in Birmingham is Centenary Square, part of the dynamic Westside District. The square is home to the award-winning Library of Birmingham and is fronted by the newly extended Midland Metro line, enhancing connectivity between the business quarter and major rail terminals, including the upcoming HS2 Curzon Street station.
Surrounding the square are new Grade A office buildings, high-spec apartment developments, and a growing cultural and hospitality scene, making it a hotspot for professionals and short-stay tenants alike. As placemaking continues in and around Westside, values here are forecast to rise ahead of the wider market average.
Birmingham Rental Market Forecasts Remain Strong
While capital appreciation draws long-term investors, the rental outlook is equally robust. According to JLL, Birmingham rental prices are forecast to rise 3.5% in 2025, followed by steady growth of around 2.5% annually through to 2027. This is driven by:
With HS2, the £1.9bn Smithfield regeneration, and the expansion of the Big City Plan, Birmingham is expected to generate 50,000 new jobs and over 5,000 new homes, yet supply is still trailing far behind. With the city’s rapid population growth, a minimum shortfall of 28,150 dwellings is expected by 2031, rising steeply to nearly 61,000 by 2036.
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About the author
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Managing Director
GEORGE RADFORD
George is the co-founder of RPA Group and Managing Director of the business in the UK and Africa. A qualified chartered surveyor (MRICS) with almost 20 years of property investment experience, George has helped his clients successfully grow and strengthen residential property portfolios in multiple markets and territories.
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