The “Commonwealth Games Effect’” may increase demand for Birmingham homes long after the games ended on 8th August. Home prices are also expected to increase by 27% by 2026, with the Games being a prime driver of this growth, according to SevenCapital, a Birmingham-based real estate investment and development company. In addition to over 1.3 million spectators making the Birmingham Commonwealth Games the most attended Games ever, the city will also benefit from its lasting legacy.
Rising property prices
As a result of the Commonwealth Games, “property prices in Birmingham are expected to rise more than any other city in the UK”, comments Angus Michie, managing director at SevenCapital. For reference, when Manchester hosted the Commonwealth Games, property rises increased by 63% across the city in the five years prior, with market growth also continuing to soar by 140% in the five years after. Similarly, Glasgow, another host city, also experienced a consequential housing price boom in 2014, including a 27% increase in the five years following the Games.
Finding affordable housing
Birmingham has been named as the best-value city in the UK, as well as home to the cheapest property, a recent survey by McCarthy Stone reveals. In particular, Birmingham’s regeneration schemes (influenced by the Commonwealth Games) include a £72 million redevelopment plan for Perry Barr (home to Alexander Stadium) with over 5,000 new homes now being constructed in north-west Birmingham. Since house prices are, however, only set to increase, buyers may want to consider other ways to find more affordable housing. Purchasing a home at auction, for example, can be a smart way to score a bargain or purchase a home fast. In this case, auction finance (also known as a bridging loan) can be used to purchase a property at auction. After winning an auction, full payment must be made within 28 days. Yet, since traditional mortgages typically require longer to complete, auction finance makes it possible for buyers to purchase a home fast.
£1 billion economic boost for host cities
“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”, Michie explains. Indeed, cities that previously hosted the Commonwealth Games between 2002-2018 experienced a real estate boom with each city receiving an economic boost of £1 billion minimum, along with investments of around £400 million and a 25% increase in tourism, the Commonwealth Games Value Framework reports.
All in all, it seems Birmingham is set up for future success. “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”, Michie comments further.