Property prices in Birmingham are expected to rise more than any other city in the UK following the Commonwealth Games, it’s being claimed.
The event, starting today, is the biggest event to come to the West Midlands and the largest sporting event in the UK since the 2012 Olympics. It is set to attract one million spectators to the city, as well as a TV audience of 1.5 billion people over the coming weeks.
The demand for property in the city, particularly city centre apartments, is anticipated to increase whilst property prices continue to rise, with a report from JLL predicting that average property prices are set to grow by 4.9 per cent per year in the next five years – an increase of 27 per cent by 2026 – with the Games cited as a key driving force behind this growth.
Historically, the property market in host cities has greatly benefitted from the Commonwealth Games and the urban regeneration that comes with it. Land Registry data showed an average house price increase of up to 63 per cent in the five years leading up to the 2002 Commonwealth Games in Manchester, and market growth skyrocketing to 140 per cent in the five years after.
Glasgow also saw a similar property price boom, with the property market seeing 8.6 per cent decrease in prices in the five years before the 2014 Commonwealth Games, compared to 27 per cent increase in the five years afterwards.
Investment companies say the Games has been instrumental in further accelerating additional key infrastructure upgrades within the city, with £25m of city centre projects, and £778 of public funds to deliver world class venues.
Angus Michie, managing director at 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, as well up to 25 per cent increase in tourism in the three years after hosting and investments of up to £400m.”
He continues: “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.”