As a primary investment strategy for 75% of investors in Birmingham in 2021, off-plan properties are among the top investments in the town. Investing in off-market properties often yields good returns for investors if they are located in the right location, gain a good amount of rental income and realize a lot of capital gains from the property development.
Investments of any kind are bound to carry certain risks, and off-plan properties in Birmingham investments are no different. For an investment to be successful, investors must have a firm grasp of their expectations and goals before investing in a venture.
An advantage of off-plan properties in the UK is the ability to secure the property at a discounted price before capital appreciation during the construction stage, which gives investors instant equity upon completion.
The off-plan development may be an offbeat choice for everyone, so in this article, we take a closer look at the best off-plan properties to invest in Birmingham and what makes them so appealing.
Key Takeaways
- When investing in the real estate market, it is essential to research the market, the location, and the developer.
- A property off-plan should be seen as a medium- to long-term investment, so there is a better time for fast profits from buying and flipping a property.
- Purchasing a home requires a 25-30% down payment.
What Is Off-Plan Property Birmingham?
Off-plan property investment in Birmingham involves purchasing properties before they are constructed, allowing investors to secure lower prices and potentially benefit from significant capital appreciation as the development progresses.
An off-plan real estate investment is buying a property (typically an apartment block or individual unit) before it is built. It is possible to purchase off-plan by paying a reservation fee and a deposit either before construction or during construction, the purpose being that the asset will increase in value after the construction phase has ended once the building has been completed.
A significant time commitment is involved in purchasing off-plan properties during construction, which adds to the overall risk that investors must consider when investing in off-plan real estate.
Three Off-Plan Properties in Birmingham Selling Fast
Hometrack published a report stating that Birmingham is growing faster than any other city, making it clear that Birmingham’s property market is booming. From Birmingham’s leading developer, here are three fantastic investment opportunities.
Popular Areas for Off-Plan Investment in Birmingham
- City Centre: Known for its high rental yields (around 6.2%), the city center is undergoing significant redevelopment, making it a prime location for off-plan investments1.
- Selly Oak: With a large student population, this area offers a rental yield of 9.6%, making it ideal for investors targeting student accommodation1.
- Digbeth: Recognized as a cultural hub with a vibrant arts scene, Digbeth is seeing an influx of new developments and is popular among young professionals
Summer House, Jewellery Quarter
Summer House is one of the most sought-after off-plan investment properties in Birmingham’s Jewelry Quarter, which offers excellent investment prospects in a district that is becoming increasingly desirable.
Featuring contrasting brick colours and a range of roof forms, Summer House is a modern structure that reflects the local tradition and heritage and yet reflects the modernity of its contemporary architecture.
Located close to Birmingham’s central business district, this high-quality development offers an excellent opportunity for young professionals in Birmingham as they look for an ideal place to live and work.
Quadrant, Birmingham City Centre
The Quadrant is ideally situated for city exploration in the heart of Birmingham’s Jewellery Quarter and Brindleyplace areas, making it a go-to place for new off-plan properties to invest in the UK. It is also just between Birmingham’s Colmore Business District and Birmingham’s Jewellery Quarter, just a few minutes’ walk away.
Moreover, it is conveniently located near Paradise, one of the city’s most significant developments in a very long time. In 2026, when the entire project is completed, Paradise will consist of an impressive 1.8 million square feet of retail, leisure, and hotel space at a height of 181 feet.
CopperBox, Harborne
CopperBox is situated in a prime position in the heart of Harborne, just a few minutes walking distance from Birmingham city center, yet offers all the advantages that come with living in a high-end location. This is the third-most crucial off-plan property in Birmingham, making it an ideal investment for seasoned and experienced investors.
Aside from its bustling cafe culture and thriving restaurant scene, Harborne also houses several sporting clubs, pools, and fitness centers, as well as sports clubs. These facilities have increased the demand for properties, increasing the property price that will benefit investors over time.
There are also plenty of nearby leafy villages, such as Moseley and Kings Heath, for those who enjoy nature, and it is convenient for those who enjoy the outdoors to visit Birmingham’s Botanical Gardens and the Birmingham Zoo.
What are key features of Off-Plan Property Investment Birmingham?
- Discounted Prices: Developers often offer off-plan properties at prices below market value to attract early buyers. This can lead to instant equity once the property is completed and market prices rise12.
- Capital Growth Potential: The expectation is that the value of the property will increase during the construction phase, driven by ongoing regeneration projects and economic developments in Birmingham. Predictions indicate a potential rise of 19.2% in property prices from 2023 to 202713.
- Rental Income Opportunities: Once completed, off-plan properties can generate rental income, making them attractive for buy-to-let investors. The city’s strong rental market, bolstered by a growing population and demand for housing, enhances this appeal
Why Invest in Off-Plan Properties?
Off-plan properties may be an excellent investment for several reasons. An asset like off-plan property offers the chance to deliver two separate income streams, which makes it a versatile, reliable, and rewarding component of any portfolio. One of the many reasons why purchasing a home off the plan is a smart move. Here is why you should consider investing in off-plan properties in Birmingham.
Discounted rates
The cost of off-plan developments is often lower than market rates, making them an attractive investment. Property developers often mark down a property’s price to encourage buyers to buy it at a discounted price. In particular, at the beginning of the development process.
There is usually an adjustment in the asking price offered by a house builder because they need to sell the units to raise funds for the next development phase, so they are usually open to negotiating.
Exceptional capital growth
With off-market properties in Birmingham, capital growth tends to be higher than on the market. The potential for capital gains increases if you purchase a home for below market value and it’s located in an area where housing prices are increasing.
Best Three Off-Plan Properties for Sale in Birmingham
Here are the top three off-plan properties in Birmingham for sale:
Birmingham-B4-3 Bed-Snowhill Wharf
Birmingham-B4-3 Bed-Snowhill Wharf is a top-notch property investment opportunity for investors searching for off-plan properties in Birmingham.
Developed by St Joseph of the Berkeley Group, this chic, modern off-plan apartment is central to the flourishing Birmingham property market.
With its desirable position on the calm canal, Snowhill Wharf gives its inhabitants a tranquil and scenic environment.
Despite the tranquil settings, it is near to everything Birmingham offers. Fine dining, neighbourhood restaurants, entertainment hotspots, and shopping centres are conveniently located nearby.
Purchasing a unit at Snowhill Wharf entitles you to use the building’s upscale amenities, which include a 24-hour concierge, a lounge, a top-notch gym, a soothing sauna and steam room, and a cosy movie theatre.
The complex also has three beautiful podium gardens in a wonderful courtyard, which are great for gathering.
Snowhill Wharf checks all the boxes for property investors with excellent transportation options and a desirable downtown Birmingham location.
Contact Pluxa Property and take advantage of the opportunity to invest in this fantastic property.
Birmingham-B5-2 Bed-Timber Yard
Property investors have a fantastic investment opportunity in Birmingham’s Southside neighbourhood at Timber Yard.
This off-plan project, created by Galliard Homes and Apsley House Capital, provides 379 contemporary apartments spread over two residential structures.
Many houses include outside areas like terraces, balconies, or winter gardens, and the buildings are arranged around a private manicured courtyard garden.
These off-plan apartments by Claridge Architects blend distinctive designs with timeless style and energy efficiency, making them appealing to owner-occupiers, first-time purchasers, and investors.
The building has top-notch features and unique recreational amenities for residents exclusively, such as a gym, concierge services, a club lounge, and a screening lounge.
Major transit hubs, including Birmingham New Street and Birmingham Moor Street, are nearby, and you can reach there on foot in 10 minutes. Furthermore, Moor Street will provide access to the forthcoming HS2 rail link.
This prestigious Birmingham off-plan apartment provides an alluring opportunity for investors in the thriving Birmingham property market.
Birmingham-B1-1 Bed-JQ Rise
JQ Rise offers many advantages in terms of location for those interested in property investing. The building boasts luxurious flats with a high-quality interior design and layout.
It is in an area rich in green spaces and is the perfect off-plan property for nature lovers.
Numerous off-plan apartments make up this iconic building tower, which offers outstanding views and unmatched proximity to the city centre.
The Hs2 (High-Speed Train) has already received clearance, bringing the capital closer to the city in 49 minutes.
The Birmingham International Airport is located just 5 miles southeast of the city centre and offers more than 400 direct or one-stop flights to destinations across the globe.
JQ Rise will give young professionals immediate access to the city’s most significant commercial areas, while the adjoining Arena Central and Paradise Circus projects will generate over 25,000 new employment opportunities.
Investing in JQ Rise now puts investors in a prime position to profit from remarkable future projects that will completely transform Birmingham.
The ideal time has come to take advantage of this fantastic investment opportunity in the continuously changing Birmingham property market.
FAQs
What does off-plan property mean?
Off-plan property refers to a property that has yet to be built for it to be developed into a building. A pre-construction is generally marketed to real estate developers and early adopters as a development, which in turn provides the purchaser with the ability to achieve more favourable financing terms from their lenders once the development is complete.
Is it worth investing in off-plan property in Birmingham?
Due to their lower price points and solid rental yields, these investments have proven excellent investments in the present market. Furthermore, properties on the off-plan market have a greater chance of increasing significantly in value over time in comparison with properties that are already completed.
Peter Juhasz is the founder of Pluxa Property, the biggest property investment company in UK and Group CEO of AIP Capital Group and a property investment expert with over a decade of experience in the UK market.
He built a successful property company using innovative cashflow strategies like Serviced Accommodation and HMOs, scaling to 200 units in four years.
Peter leads a team specializing in property and business acquisitions across various sectors. A former co-host of “Cashflow With Property,” he shares his expertise in real estate investing and business scaling.
He is committed to continuous learning and helping SME owners and investors maximize their returns, driven by his passion for empowering others to achieve their financial goals.
To learn how Pluxa Property can help you in UK property investment, contact our experts.
