Best Areas of Birmingham to Invest in for 2025

With multiple regeneration schemes underway, exciting new developments such as The Colmore on St. Paul’s Square and SETL, and an expanding business sector, Birmingham property is rapidly growing in popularity with buy-to-let investors.

JLL’s latest forecasts suggests that Birmingham prices will rise by 19.9% between 2024 and 2028, while rental prices will rise by 22.2% over the same period.

This has highlighted a number of lucrative investment locations in the city including Jewellery Quarter, Brindleyplace, Digbeth and the city-centre.

But where are the best areas of Birmingham to invest in for 2025?

We examine how attributes such as transport links, rental yields, price growth, demand, businesses and amenities are creating some of the best places to invest in Birmingham property.

Average Property Price (October 2024): £206,000 
5 Year Property Price Growth: 26%
Average Rental Yield: 6.1%

At the heart of Birmingham you’ll find the city centre – a thriving hub of employment opportunities and amenities. While central Birmingham has long been a popular investment spot, the continuation of key projects, including the city centre regeneration scheme and Paradise, is only strengthening its appeal to investors. 

This combination of regeneration schemes is not only restoring public realms and amenities, but the success of Paradise is connecting the city’s expanding business district to its bustling city centre. Housing finance giants such as HSBC and Mazars, the Paradise development has helped to transform Birmingham into the mixed-used hub as we know it. 

Delivering new amenities and an abundance of employment opportunities, this redevelopment is at the root of Birmingham’s future. By raising the profile of the second city and enticing more global companies, the city is seeing an influx in tenants. 

With Birmingham rental yields as high as 6.1%, the city centre is one of the best buy-to-let areas in Birmingham, especially for those searching for consistent tenant demand and competitive rents.

Average Property Price (October 2024): £184,000
5 Year Property Price Growth: -4%
Average Rental Yield (PropertyData): 6.5% 

As Birmingham’s most historic neighbourhood, the Jewellery Quarter is quickly becoming a quirky alternative to the city centre. Full of independent shops and cafes, this area of Birmingham offers a ‘village feel’ for those searching for a sense of community with the accessibility of a city centre lifestyle. 

Compared to city centre prices, the Jewellery Quarter remains a relatively affordable alternative for investors. For many young professionals, the Jewellery Quarter provides the perfect alternative to city living, which continues to be highlighted in the property market. Averaging prices of around £184,000, property in the Jewellery Quarter offers affordability without sacrificing on reputation or style.

As a whole, the Jewellery Quarter is a thriving hub for both tenants and investors, but according to Nationwide research, properties closer to the neighbourhood’s transport links have the potential to be more lucrative investments. More specifically, properties within 500m the Jewellery Quarter Station could experience premiums of up to 9.4%.

Average Property Price (October 2024): £245,000
5 Year Price Growth: 14%
Average Rental Yield: 6.3%

Recognised as one of the city’s more affluent suburbs, Edgbaston is a Birmingham buy-to-let haven for those looking for property further afield. As more tenants search for a healthier balance of city centre and suburban living, these spots on the outskirts of the city centre are becoming increasingly popular.

One of the main drivers behind Edgbaston’s popularity is its location. Conveniently situated next to the University of Birmingham campus, Edgbaston is a hotspot amongst students. This suburb is also known for having an abundance of large houses, meaning investors have the option of targeting tenants with HMOs, or families. 

The potential for HMO opportunities means that rental yields in Edgbaston can vary considerably, especially between property types. However, the suburb is currently averaging yields of 6.3%, putting Edgbaston amongst the best places to invest in Birmingham.

Average Property Price (October 2024): £170,000
5 Year Price Growth: 7%
Average Rental Yield: 6.8%

Digbeth is Birmingham’s very own Camden Town, and after being coined the ‘coolest neighbourhood in Britain’, this area is becoming incredibly popular amongst young professionals. Just a stone’s throw from the city centre, Digbeth is a bustling hub full of creativity, independent businesses and cultural performances. 

Over the years, Digbeth has been considered an ‘up and coming’ area of Birmingham, and as time has progressed, it has become one of the city’s most established employment bases, especially for digital media. With creative agencies on every corner, it’s no surprise more young professionals – and investors – are choosing Digbeth.

Not only has Digbeth flourished into a colourful destination for living and working, it will soon be Birmingham’s biggest transport hub. In addition to housing the Birmingham Coach Station, Digbeth will also be home to the HS2 Curzon Street interchange. Offering connections to the capital in just 49 minutes, this project will inevitably entice more transient tenants to the neighbourhood. 

Digbeth’s history is a reminder how much the area has grown in recent years, making it one of the most lucrative investment hotspots in Birmingham. That said, prices remain relatively affordable at £170,000, and with yields of almost 7%, Digbeth is amongst the best places to invest in Birmingham. 

Average Property Price (October 2024): £264,000
5 Year Price Growth: 21%
Average Rental Yield: 4.1%

If you’re looking for suburban spots outside of the city centre, you’ll find Harborne – another one of Birmingham’s more desirable postcodes. With a lengthy high street filled with unique eateries and cafes, Harborne is often a go-to for older professionals looking for a quieter alternative to the city centre. 

In comparison to the city centre, Harborne houses a more senior demographic of tenants, with the average annual household income being £46,300, which far surpasses the national average of £35,000. Not only does this outpace the UK average, it signifies the popularity of Harborne amongst older, more established professionals. 

Naturally, property prices in Harborne are much higher than other areas in Birmingham, with the average price currently sitting at over £264,000. However, Harborne’s higher quality properties and amenities also equate to much higher rents. 

Along with competitive rental yields, Harborne also has a track record of consistent price growth. With the average price far surpassing that of the City Centre and Jewellery Quarter, it’s no surprise that since 2019, the area has seen 21% price growth.