In August 2022, Birmingham successfully hosted the much-anticipated 22nd Commonwealth Games, which saw competitors from more than 50 countries arrive to compete in more than 23 sports including artistic gymnastics, hockey, lawn bowls, weightlifting, and table tennis.
But did you know that as well as bringing lots of excitement and providing the opportunity for the city to highlight everything it has to offer, the Commonwealth Games could have a significant impact on the property market over the next twelve months?
How are host city property markets impacted by the Commonwealth Games?
Research based on the performance of housing markets in previous Commonwealth Games host cities has revealed that property prices in Birmingham could rise by as much as 15%.
Prior to the Birmingham games, the Commonwealth Games have been hosted in the UK on four occasions since 1970. The city of Edinburgh in Scotland hosted in both 1970 and 1986, with Manchester hosting in 2002, and Glasgow hosting in 2014. In the year following the event, property prices in these host cities experienced an average increase of 14.9%.
But let’s break down the figures even further.
The local average property price in 1970s Edinburgh prior to the arrival of the games was £5,487. Just twelve months later, the overall average had increased by 23.9% and was sitting at £6,799. When the city hosted the games for a second time in 1986 the overall percentage increase in property prices was lower, however they still increased from £41,490 to £43,899 representing a 5.8% rise.
In 2002, the average property price in Manchester before the Commonwealth Games was £65,691. Twelve months after the games, prices had risen by 24.1% to £81,532. An increase was also experienced in Glasgow following the 2014 games as average prices increased by 5.6% from £107,648 to £113,668.
What do these statistics mean for the property market in Birmingham?
Currently, according to property site RightMove the average house price for property in Birmingham is £231,435 which is a figure that has remained fairly stable for several years. If Birmingham property does increase by 14.8% this would mean that the value of the average property would climb to £265,687.
All prospective property purchasers in the city should invest in a home buyers survey in Birmingham which will provide a good idea of how much investment may be required to transform it into your dream home. Firms such as Sam Conveyancing work with local RICS surveyors who understand the property market in Birmingham and the surrounding areas, which means they are well equipped to offer an informed and professional first-class service to every prospective homeowner.
Looking to the future
James Forrester, who is the Managing Director of Birmingham-based estate and letting agent Barrows and Forrester, has noted that the city of Birmingham has experienced a comprehensive regeneration period, which has cemented its place as the second city of the UK. Regeneration projects are continuing to get off the ground, which will only further increase the desirability of the city. Forrester went on to say that the Commonwealth Games have given the local economy a significant boost, which is something that is expected to encourage more businesses and indeed people to set up home during the next twelve months.
As demand increases, estate agencies and property experts all expect local property prices to rise as new buyers are drawn to the market. Importantly it’s not just wishful thinking that is fuelling these predictions as there are numerous comparable cases, such as the Olympic regeneration project that occurred in the borough of Newham in London.