Best areas to invest in property in Birmingham

Looking to invest or buy property in Birmingham for maximum ROI and rental yield benefits?

Find the top buy-to-let and rent-to-let property investment opportunities in Birmingham. 

Best Areas to Invest in Birmingham

1. Selly Oak

Selly Oak is a prime investment area in 2024, boasting rental yields of 7-8% driven by student demand and proximity to the Universities, alongside ongoing infrastructure developments.

• Housing: Mix of traditional homes and modern apartments; mid-range prices.
• Amenities: Selly Oak Park, local shops, cafes, and restaurants on Bristol Road.
• Transport: Good bus services and Selly Oak train station.
• Notable: Close to the University of Birmingham, ideal for student rentals.

2. Digbeth

Digbeth is a 2024 property investment hotspot, featuring 13% growth in asking prices and a £1.5 billion Smithfield development, with HS2 enhancing its appeal for young professionals and investors alike.

• Housing: Affordable converted warehouses and new developments
• Amenities: Hip cafes, street art, creative spaces, Custard Factory
• Transportation: Walking distance to the city center, good bus links
• Notable: Ongoing regeneration, HS2 terminal planned nearby, potential for significant value increase

3. Edgbaston

Edgbaston, Birmingham offers attractive property investment in 2024 with average prices of £394,312 and 6.3% rental yields, appealing to students and families.

• Housing: Mix of large Victorian houses and modern apartments; higher-end prices
• Amenities: Botanical Gardens, cricket ground, upscale restaurants
• Transportation: Good road links, regular buses to city center
• Notable: Prestigious area, popular with professionals and families, stable property values

4. Moseley

Moseley offers promising 2024 property investment opportunities with a median house price of $ 429,915, growing rental demand, and ongoing regeneration projects enhancing its appeal.

• Housing: Victorian and Edwardian houses, some apartment conversions; mid to high-range prices
• Amenities: Moseley Park, farmers’ market, independent shops and eateries
• Transportation: Regular buses to city center, plans for rail station
• Notable: Bohemian vibe, popular with young professionals, consistent demand

5. Harborne

Harborne, offers investors strong 10-year price growth of 59% and average yields of 3.12%, though prices are higher than the city center at £392,208 on average. 

• Housing: Mix of period properties and new builds; mid-range prices
• Amenities: High Street with shops and restaurants, Harborne Pool and Fitness Centre
• Transportation: Regular bus services, cycle routes to the city center
• Notable: Good schools nearby, popular with families, steady property value growth

What is the average rental yield in Birmingham? 

The average rental yield in Birmingham is approximately 4.7%, based on data from propertydata.co.uk. The highest rental yield recorded is 6.9% in the B29 postcode district, while the lowest is 2.8% in the B72 postcode district.

Contact Pluxa Property to explore all property investment opportunities in Birmingham

Looking to invest in Birmingham? Pluxa Property is your trusted partner for high-yield investment opportunities. With over 10 years of experience in rent-to-serviced accommodation, buy-to-serviced accommodation, overseas investments, and BRRR deals.

Our team provides personalized consultancy to help you achieve your investment goals. Contact our investment experts to discover how we can maximize your returns and guide you through every step of the process.

FAQs About Birmingham

Is Birmingham a good place to invest in? 

Yes, Birmingham is a great place to invest. The city has seen property prices increase by 80% over the past decade, with forecasts predicting a further 35% growth by 2035. This growth is driven by strong demand for housing, ongoing regeneration projects, and a growing economy that attracts both businesses and residents.

What is the average monthly private rent in Birmingham?

As of June 2024, the average monthly private rent in Birmingham is £994. This reflects an 11.4% increase from £892 in June 2023, surpassing the overall rise in the West Midlands, which was 8.4% over the same period.

Is Birmingham a good place for rent to let?

Yes, Birmingham is a good place for rent-to-let. It’s a large city with a growing population and economy, leading to high demand for rental properties. According to Bhamc, Birmingham has a strong rental market, with average rental yields often exceeding those in other UK cities— indicating a good place for future property investment opportunities as well.

What is the estimated payback period for rent to rent in Birmingham? 

The estimated payback period for rent to rent in Birmingham is 6-12 months in general. This relatively short time frame is achievable due to the city’s strong rental demand, driven by a growing student population and a thriving job market.

How much initial investment do you need to invest in Birmingham for rent to rent?

Investing in a Rent-to-Rent deal in Birmingham with Pluxa Property requires an estimated initial investment of £10,972. This could generate an estimated monthly profit of £1,032, leading to a total profit of £37,150, and an impressive ROI of 449%