We often think of the property market in domestic terms but, it is a far bigger market than this. Across Europe, individuals and organisations invest in property as a way of investing capital, without too much risk.
A stable market
The property market if any country fluctuates, usually reflecting the economic state of the country. As the market fluctuates nationwide, it can also fluctuate from one city or town to another. Even within these cities and towns, properties in neighbouring areas can be much cheaper than those across the road, the dividing line of desirability being so thin.
However, negative equity, a huge issues in the 1980s has not entirely disappeared but, property buyers are more cautious and aware of this but even so, conveyancing in Birmingham is one of ensuring the property you are buying is worth the money you are paying for.
What is the European property investment market saying about Birmingham?
London is becoming too hot to handle for many property investors, simply because the high premium prices are now possibly making investors nervous of ending in a negative equity situation.
Although the capital’s economy is grew by a whopping 20% between 2009 and 2013, outstripping the national average of 13%, it has had the effect of making property too expensive for people to invest in with confidence. The lack of assets – in other words, property – on the market also helps to maintain the price level.
Birmingham, on the other hand, is flourishing in terms of investment. The top 10 European cities for existing property investment showed some interesting movement in investor confidence and capital as we head in to 2015.
Berlin was the top city for investment, a move that saw it take the top spot from 4th position the previous year. The biggest mover in the top 10 table was Athens, climbing an impressive 23 places to take 5th spot. And nestling just underneath in 6th position was Birmingham, a move of 14 places.
London, like many other established capital cities dropped 5 places to hit 10th spot.
History tells us that Queen Victoria, so offended by the industrial sights of the Black Country, had the curtain on her rail carriage drawn as the royal train puffed past. The debate of whether this happened or not, is a gently argument amongst scholars but, suffice to say, that the landscape of Birmingham is very different from the 19th and 20th Centuries.
AS we enter the half way mark of 2015, the statistics for Birmingham as the country’s ‘second city’ is looking rosy. It is a city fast gaining a reputation for attracting businesses and entrepreneurs, with 19,000 businesses and companies created in the city in the past year, second only to London.
The scheduled arrival of the ‘High Speed 2’ rail link in 2026 is also having an effect on how potential investors see the future potential of the city too. By 2037, the West Midlands is expected to see an input of cash to the tune of £3.1 billion.
The buoyancy of the European property market
And thus, with many positives riding high for Birmingham, investors are looking to the city to give them great returns on their property investments and this shows no signs of abating just yet.
What also helps Birmingham is that across Europe as a whole, the property market is once again picking up pace, with more money (and debt) circulating within its system. The perceived lack of assets, in other words properties, to invest in are not so free-flowing. And this shortage will help to push house prices up, or maintain their value at least.
Is this bad news for the ‘ordinary’ buyer?
In some ways, it may be but in other ways it could also be a blessing.
Those that can and do invest in a property in the city and surrounding areas could find that if they sit pretty, their property could slowly but surely increase in value. This positive equity is the very thing many property owners need to be able to move up to a bigger property.
Those looking to sell could also gain from their investments, providing they were shrewd when they bought.
However, with the property market there are winners and losers. For some who ‘over borrow’ against their property, they may find it takes far longer to accrue a positive equity in their property. Thus, they effectively become trapped in a property that is not suitable and not worth what they paid.