What Makes Birmingham City Centre a Solid Place to Invest in 2025

What Makes Birmingham City Centre a Solid Place to Invest in 2025

As London property prices continue to push many investors to look elsewhere, Birmingham has steadily grown into one of the UK’s most watched markets. With major regeneration projects underway, strong rental demand and improved transport links, the city centre is now firmly on the radar for both domestic and international buyers.

In particular, the South Central development offers a chance to invest right in the middle of Birmingham’s business, cultural and commercial hub. But beyond the postcode, what makes Birmingham a strong place to invest in 2025?

Let’s take a closer look.

Regeneration and Investment in the City Centre

Birmingham is in the middle of a long-term regeneration plan, with over £25 billion being invested into the city through various public and private projects. These include the ongoing Paradise Birmingham, Smithfield regeneration, and the Birmingham Curzon Street Station as part of HS2.

These developments are not just cosmetic. They’re changing how people live, work and move around the city. New commercial space, upgraded public areas and modern housing are attracting professionals who want to live in the city rather than commute.

This has created strong demand for centrally located apartments that can offer quick access to work, dining and entertainment. Properties in the city centre, like those at South Central, are well positioned to benefit from that.

Rental Demand and Yield Potential

According to Zoopla, Birmingham has seen one of the strongest increases in rental demand in the country. As of early 2025, average rents are up by over 8% year-on-year, driven by returning students, new job seekers and international tenants looking for short and long-term accommodation.

Birmingham has five major universities, including University of Birmingham, Aston University and Birmingham City University, and the student population exceeds 80,000. A good portion of these students remain in the city after graduation, which has helped support long-term growth in demand for rental housing.

South Central, located within walking distance of New Street Station, The Mailbox and the Bullring, is in a prime area for young professionals and postgraduates who want to live centrally. That kind of location can deliver stronger rental yields compared to properties further out.

Population Growth and Job Creation

The wider West Midlands is expected to grow by around 200,000 people by 2030, with much of that growth concentrated in Birmingham. Job creation is also helping drive demand in the city. According to the Office for National Statistics, employment in the Birmingham metropolitan area has risen steadily in recent years, and the city now ranks second only to London for the number of business start-ups.

Large employers like HSBC, PwC and BT Group have opened or expanded regional headquarters in Birmingham. This isn’t just about office jobs either. The city is also seeing growth in health, logistics and creative sectors.

All this supports long-term demand for housing in the city centre, particularly for properties that offer good transport access and modern layouts.

Transport Infrastructure Keeps Improving

Connectivity is one of Birmingham’s strong points. The city sits at the heart of the UK’s road and rail networks. The upcoming HS2 project will reduce travel time to London to under 50 minutes, which is expected to further boost property values in central areas.

Birmingham New Street, Moor Street and Snow Hill stations are all within walking distance of South Central. This makes it easy for residents to travel locally and nationally without relying on a car.

Birmingham Airport, which is just 10 minutes by train from the city centre, connects to over 150 global destinations. For international investors or those planning to let to overseas tenants, this connectivity adds an extra level of appeal.

Competitive Prices Compared to London and Manchester

Even after years of growth, Birmingham remains much more affordable than London. According to Rightmove, the average price for a flat in Birmingham city centre is around £230,000, compared to over £550,000 in central London.

Compared to Manchester, another popular investment city, Birmingham offers slightly better value per square foot, especially for newly built properties.

Projects like South Central, which offer modern layouts, amenities and central access, allow investors to enter the market at a lower price point while still benefiting from strong rental potential and long-term capital growth.

South Central Birmingham: A Well-Placed Investment

Located on Southside, just minutes from Chinatown, The Arcadian, and Birmingham Hippodrome, South Central sits in one of the most walkable parts of the city.

The development features one and two-bedroom apartments designed for modern city living, with layouts that appeal to both long-term tenants and short-term renters. With the city’s housing demand continuing to outpace supply, this type of property has strong letting potential.

It’s also worth noting that South Central is being delivered by a team with a proven track record of completing city centre residential schemes. This adds some peace of mind for investors concerned about construction delays or uncertainty.

Final Thoughts

For investors looking for a UK property in 2025, Birmingham city centre offers a combination of affordability, rental demand and future growth potential that is hard to ignore. With large-scale infrastructure projects underway and increasing interest from both tenants and employers, the city is building solid long-term foundations.

South Central’s location puts it right at the centre of this momentum. For international investors especially, it ticks many of the practical boxes: central location, walkable to transport, growing rental market, and entry-level pricing that still leaves room for capital growth.

If you're interested in finding out more or would like to speak to the team, get in touch here.

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