Assessing the risk
Bucking the trend or dodging the punches?
We asked our Founder and Chairman Joe Billingham what he thinks the key factors are that could shake the city and how he would rate them in terms of threat. From 1 being low to 5 being very high.
Commercial / office rental sectors – 3
Watching the city’s movement closely, Birmingham’s economy has seen a shift towards a more service driven environment – a back office provider if you will, for some of the country’s major firms, with HSBC the trendsetter and many major league players following suit. With a 40% saving on every employee at a desk in Birmingham over London, we can see why.
Hygiene and safety standards will feature more highly than ever and ground floor office space, open airy environments free of lifts are sure to fetch a premium. These Covid driven purchase and lease decisions will surely impact on our commercial property sector.
Employment – 2
Highly skilled workforces are on the up especially across the Science and Tech sectors. Birmingham wants talented, driven individuals and can pay for them. This is a great position for the city as key players compete for talent to bring to the area. Property will benefit as a result, both in the residential and commercial sectors as we welcome high-flying execs to the region with their families …and their salaries. With regeneration at its peak, demand for roles across the whole of the construction and development industry will remain consistently high.
Brexit – 2
A hard Brexit is indeed a risk. That said, Birmingham has very different fundamentals in terms of supply and demand which brings our rating down to a 2. Moreover, the opportunities presented as result should not be overlooked. As the value of the GBP is driven down, overseas investor interest is driven up. Birmingham’s housing demand remains in a buoyant position and as such we’re confident the city will withstand a Brexit beating.
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