The Commonwealth Games begin this week and will be hosted in Birmingham. Prestigious sprinters, swimmers, and more sporting sensations will take part in the international multi-sport in hope of winning first place.
Estate and lettings agent, Barrows and Forrester, reveal that the upcoming Commonwealth Games could boost the Birmingham housing market by as much as 15%.
Based on the housing market performance seen across other previous host cities. Barrows and Forrester have looked at how the legacy of hosting such an event can help cultivate positive house price growth in the upcoming years.
UK cities that hosted the commonwealth games
The UK has hosted the Commonwealth Games four times since 1970. On average this has caused property values to increase by an average of 14.9% across these cities.
In 1970, when Edinburgh was the host city of the games, properties were valued at around £5,487. Just twelve months after hosting the games the average house price increased to 23.9%, boosting the value to £6,799.
In 1986 Edinburgh hosted the games for a second time. The average house price started at around £41,490 and increased to £43,899 one year later.
In 2002 Manchester hosted the Commonwealth Games. During this time the average house price in the city was £65,691 but one year later this rose to £81,532.
In 2014 Glasgow was given the opportunity to host the games. At the start of the competitions, house prices were £107,648 and a year later this was up to £113,668, an increase of 5.6%
Predictions for Birmingham’s house price growth
The finding by the estate and lettings agent demonstrates that there is a correlation between the average house price growth within cities that host the commonwealth games.
As the largest British sporting event since the spectacular 2012 London Olympic Games, many predict it will have a direct impact on Birmingham’s house price growth within the upcoming year.
Based on the current Birmingham house price of £222,834, an average Commonwealth house price boost of 14.9% is likely to see property values climb to £255,934 in the next 12 months.
Managing director of Barrows and Forrester, James Forrester, concludes: “Birmingham has already enjoyed an extensive and ongoing period of regeneration and future plans to continue this regeneration will further cement us as the UK’s second city.”
“The choice to host the Commonwealth Games in Birmingham is testament to how far we’ve come in this respect and this privilege will not only help to put the city further on the map, it will bring a huge boost to the local economy and will entice more businesses, and people, into calling the city home in the process.”
“This heightened demand will inevitably help to cultivate local property prices as more buyers enter the market. You need only look at the huge boost the Olympic regeneration project brought to the London Borough of Newham to see that an exciting time lies ahead, not only for Birmingham’s housing market, but for the city as a whole.”