Property prices in Birmingham are set to rise more than any other city in the UK after the Commonwealth Games, it is claimed.
The event, which begins today, is the biggest upcoming event in the West Midlands and the biggest sporting event in the UK since the 2012 Olympics. It is expected to draw a million spectators to the city, as well than a television audience of 1.5 billion people over the next few weeks.
Demand for real estate in the city, particularly downtown apartments, is expected to rise as property prices continue to rise, with a JLL report predicting that average property prices are set to increase by 4 .9% per year over the next five years – a 27% increase by 2026 – with the Games cited as a key driver of this growth.
Historically, the property market in host cities has greatly benefited from the Commonwealth Games and the urban regeneration that accompanies them. 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 of up to 140% in the following five years.
Glasgow has also seen a similar property price boom, with the property market seeing an 8.6% drop in prices in the five years leading up to the 2014 Commonwealth Games, compared to a 27% increase in the last few years. next five years.
Investment firms say the Games have helped to further accelerate further upgrades to key infrastructure in the city, with £25m of city center projects and £778 of public funds to deliver venues world class.
Angus Michie, Managing Director of SevenCapital, says: 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, such as up to 25% increase in tourism in the three years following hosting and investments of up to £400 million.
He continues: “With so many homebuyer attractions in the city and property values likely to rise significantly following the Commonwealth Games, this sets the precedent for a continued ripple effect of future investment which will boost Birmingham for many years to come, securing its place as one of the best places to buy property in the UK.