Birmingham has strong pillars for recovery - report
Birmingham has strong pillars for recovery - report
Steadfast infrastructure investment, a resilient residential market and a pick-up in both office and manufacturing activity are likely to underpin Birmingham 's post-Covid recovery.
That 's according to real estate advisory firm Avison Young 's report, 2021 Forecast Birmingham.
In the report, Avison Young earmarks the transformative effect of infrastructure investment as central to boosting the economy, unlocking development and driving change - with completion of the Metro second phase and long-term HS2 plans as key.
Birmingham 's position as top migratory destination from London in 2019, along with its strong build to rent (BTR) market, are also likely to continue to ignite investor interest, the report adds.
In three of the last five years before the pandemic, the city achieved higher GDP growth than the UK and European city averages, with the largest population growth in the UK outside London.
Birmingham also boasted a busy office market, significant city-wide regeneration, and its professional and financial services sector accounted for a quarter of regional output.
Yet, owing to its high concentration of sectors heavily impacted by the pandemic such as manufacturing and tourism, the city was among the worst hit when Covid-19 struck.
Carl Potter (pictured), managing director for Avison Young in Birmingham, said: “Birmingham was making headlines for its economic growth before the COVID-19 pandemic, with real estate playing a vital role, but has been hit hard and we must not underestimate the challenges ahead.
“While sharing many of the same challenges of its core city counterparts, Birmingham must look to its strengths and seize the opportunities emerging, particularly in areas where it has potential or a stronger proposition.
“Continued infrastructure investment, which will provide the confidence to businesses and investors alike, paired with a fast and agile response to office market demand and the continued growth of residential, can help Birmingham gain momentum and pave its way to pre-Covid activity levels.
“All of this will need to be driven by close partnership working between the public and private sector, which we know is a major strength, helping to assure people and communities are central to our recovery.
“Alongside the ongoing roll out of a vaccine and following Brexit, uncertainty is reducing and there are lights at the end of the tunnel for people, businesses and the city as a whole. ”
The 2021 Forecast Birmingham follows the release of Avison Young 's UK National Outlook for 2021, featuring predictions for the commercial real estate industry across office, retail, residential and industrial sectors, as well as Ten Trends projected to impact commercial real estate globally.
Access the full 2021 Forecast Birmingham report here, as well as the National Outlook here and the top 10 CRE trends for 2021 here.
Avison Young will be hosting a webinar on the Forecast Birmingham on Wednesday 20 January.
Hear from our experts and invited guests on the trends and predictions by signing up here.