Feature: Birmingham property market expected to boom from the ‘Commonwealth Games’ effect
By Angus Michie, Managing Director at SevenCapital
Property prices in Birmingham are expected to rise more than any other city in the UK as it takes to the starting line for launch of the Commonwealth Games this week (Thursday 28th July).
The biggest event to come to the West Midlands and the largest sporting event in the UK since the 2012 London Olympic Games, the Commonwealth Games is set to attract one million spectators to the city, as well as a TV audience of 1.5 billion people over the coming weeks – as well as delivering a lasting legacy for the city and its residents.
The demand for property in the city, particularly city centre apartments, is anticipated to increase whilst property prices continue to rise, with a report from JLL predicting that average property prices are set to grow by 4.9% per year in the next five years – an increase of 27% by 2026 – with the 2022 Commonwealth Games cited as a key driving force behind this growth.
Historically, the property market in host cities has greatly benefitted from the Commonwealth Games and the urban regeneration that comes with it. Land Registry data showed an average house price increase of up to 63% in the five years leading up to the 2002 Commonwealth Games in Manchester, and market growth skyrocketing to 140% in the five years after.
Glasgow also saw a similar property price boom, with the property market seeing 8.6% decrease in prices in the five years before the games, compared to 27% increase in the five years after the Commonwealth Games in 2014.
With improved transport links, enhancements to social and leisure spaces for residents and increased employment opportunities helping to stimulate further investment projects, Birmingham will be no different.
As the UK’s second city, Birmingham already boasts a plethora of Michelin-starred restaurants, quirky independent brands, outstanding transport links, international sports venues and world class cultural offering.
The Games has been instrumental in further accelerating additional key infrastructure upgrades within the city, with £25 million worth of city centre projects carried out to revitalise the city centre and an impressive £778 million of public funding to deliver world class sport and venues which, once the Commonwealth Games has finished, will provide lasting benefits for the local area and its residents.
Like Birmingham, Manchester underwent substantial investment before hosting the Commonwealth Games, and it has continued to reap the benefits of their hosting duties over a decade later, with external investment into its city centre and the surrounding areas estimated to have increased tenfold since the Games were hosted there.
Studying the economic impact of previous games on their respective host cities between 2002 and 2018, The Commonwealth Games Value Framework reports that an economic increase of at least £1 billion for each previous host city, as well up to 25% increase in tourism in the three years after hosting and investments of up to £400 million.
With so much attracting homebuyers to the city and property values likely to increase considerably in the wake of the Commonwealth Games, this sets the precedent for an ongoing ripple effect of future investment that will boost Birmingham for many years to come, securing its place as one of the best places to buy property in the UK.