Property market set for a strong year, says study
ASTRONG 2020 is being predicted for Birmingham’s property market spurred by high demand for office and industrial space and resilience of retail and residential, according to a report.
A string of new projects are expected to commence this year, one of the largest of which is the Peddimore industrial park near Sutton Coldfield.
A newly published 2020 forecast, produced by property consultancy Avison Young, also highlights strong retail performance compared to other regional cities.
Additions such as the world’s largest Primark last year laid the groundwork for stability in 2020, the agency said, with leasing volume and vacant space set to stay constant.
An overall increase in rental growth rates across office and industrial property by year-end is predicted, alongside an increase in industrial leasing levels and a decrease in office vacancies.
The 2020 forecast provides perspective on how global events, trends and indicators impact commercial real estate in a variety of sectors, including capital markets, office, retail, build-to-rent, industrial and hospitality and includes analysis of all major regions and cities in the UK.
Peddimore, led by IM Properties with Birmingham City Council, will provide industrial and logistics space to cater to the city’s advanced manufacturing sector, fuelling growth of the area’s knowledge economy with infrastructure work on-site commencing this year.
Work on a new building called Enterprise Wharf is due to start later this year on Innovation Birmingham Campus which will provide space for tech and digital startup companies.
Carl Potter, managing director of Avison Young’s Birmingham office, said: “The strong forecast across sectors is testament to the long-term positive influence of flagship projects such as HS2, the 2022 Commonwealth Games and Paradise, driving interest and stimulating demand across the city.
“Particularly promising is industrial and logistics property, where an increase in leasing volume is predicted.
“Due to the Midlands’ prime transport connections, affordability and growing labour force, developers looking to capitalise on the growth of e-commerce are likely to ramp up speculative building in the region over the coming year.
“2020 developments will cement the city’s status as an attractive UK city for life sciences and tech.”
Neil Rami, chief executive of inward investment body the West Midlands Growth Company, added: “Birmingham’s economy is driven by a diverse spectrum of sector expertise.
“This forecast highlights that our engine of industries is working well, with high demand across all types of workspaces, with the industrial sector in particular proving an attractive proposition for a growing number of businesses.
“Major schemes coming forward such as Birmingham’s Peddimore, Wolverhampton’s i9 and phase two of Coventry’s Friargate are set to increase our ability to attract highvalue investment.
“Underpinning this growing portfolio of new build opportunities are vital new research facilities from the region’s universities.
“From Birmingham Life Sciences Park, to the National Brownfield Research Institute at the University of Wolverhampton, these worldclass centres of excellence continue to put us on the map as a leading location for business growth and development.”