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Best Places to Invest in Birmingham

Discover the best places for property investment in Birmingham in 2026.

Where are the best places to invest in Birmingham in 2026?

While we’ve already highlighted why Birmingham is the best place to invest in 2026, there’s no denying that it’s a big place, and it can be difficult to know exactly where you should be looking.

As we move into the next phase of the ‘Big City Plan’, the long-term regeneration project that is transforming the skyline, Birmingham City Council is also accelerating their plans to create distinct neighbourhoods in a bid to emulate London.

This means that investors now have more choice than ever, with options available to suit all budgets, investor types and investment strategies.

With this in mind, we’re looking at the best places to invest in Birmingham in 2026, their past performance and what potential their future holds.

What makes property investment in Birmingham so popular?

Before we go through the best places to invest in Birmingham, it’s worth looking at the wider picture of Birmingham investment.

As we head into 2026, Birmingham is the market leader of the ‘Big Six Cities’ in the UK, after recording the highest annual price growth of all the ‘Big Six Cities’ through to June 2025.

Despite experiencing nearly two decades of exceptional performance, Birmingham remains extremely affordable, which now acts as the key driver for its above-average price growth.

At the same time, Birmingham rents have risen by 36% on average over the last five years, reinforcing the high level of competition the city’s rental market is facing and just how lucrative it could be for investors.

With JLL forecasts also suggesting that Birmingham’s property prices will continue to grow by a further 24% over the next four years, it’s unsurprising that it’s now the prime target for investors.

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Best places to invest in Birmingham: Jewellery Quarter

  • Average Property Price: £238,300
  • Average Change in Price YoY: +0.5%
  • Average Rental Yield: 7.87%
  • Price Forecast (2024 – 2028): +24%

Once the heart of Birmingham’s industrial revolution and the UK’s primary supplier for jewellery, the ‘JQ’ is now one of Birmingham’s most desirable neighbourhoods and a top destination for property investment.

The ideal blend of modern living meeting historic charm, the Jewellery Quarter is just at home hosting a brand new street food hub, as it is the last remaining Georgian square in the city.

What makes the Jewellery Quarter a popular investment hotspot is that it has an incredible range of stock and exceptional demand from high-earning young professionals. There’s plenty to choose from when it comes to picking an investment, particularly if you’re looking for high-quality, modern apartments with built-in amenities.

This has created a thriving rental market that is delivering some of the best returns in the city, averaging around 7.8% heading into 2026.

Best places to invest in Birmingham: Digbeth

  • Average Property Price: £215,168
  • Average Change in Price YoY: +1%
  • Average Rental Yield: 6.31%
  • Price Forecast (2024 – 2028): +24%

Digbeth is finally coming into its own now as a top destination for living, working and investing, after years of investment into infrastructure and amenities.

Home to some of the most popular nightlife spots in the city, a thriving arts and culture scene, a young population and vibrant independent shops, Digbeth remains one of the most popular destinations whilst still being the most affordable in the city centre.

It’s this affordability that contributes to one of the best rental yields in this entire list, making Digbeth a fantastic option if you’re prioritising consistent returns over a longer period.

At the same time, property price growth has been consistent but is set to thrive as projects such as Birmingham Smithfield (the neighbouring area) and HS2 come to fruition, cementing Digbeth as one of the top places for discerning renters.

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Best places to invest in Birmingham: City Centre

  • Average Property Price: £250,200
  • Average Change in Price YoY: -0.7%
  • Average Rental Yield: 7.26%
  • Price Forecast (2024 – 2028): +24%

The city centre of Birmingham is, unsurprisingly, a fantastic place to invest. With a broad range of developments available across the entire city core, there’s plenty to choose from if you want an investment that benefits from being at the heart of a major city.

The main draw for investors is transport links and employment opportunities. Any property investment at the heart of Birmingham will be within walking distance of two train stations, New Street and Snow Hill, as well as Birmingham’s main business district on Colmore Row, two aspects that almost guarantees consistent tenant demand during the investment period.

Birmingham’s core is further split into several distinct areas filled with individuality, such as Chinatown and Smithfield, meaning there’s plenty of opportunity to diversify your asset base, meaning many different investment strategies are catered for.

While properties are naturally more expensive in the city core, despite prices falling, the benefit of having everything you could ever need on your doorstep is keeping rental yields positive at 7.26%.

Best places to invest in Birmingham: Edgbaston

  • Average Property Price: £308,000
  • Average Change in Price YoY: -1.5%
  • Average Rental Yield: 5.6%
  • Price Forecast (2024 – 2028): +24%

Edgbaston represents one of Birmingham’s leafier suburbs and a key investment destination filled with opportunities across various property types, including both apartments and larger houses.

This part of Birmingham is largely characterised by historic charm, top ‘tourist’ destinations such as the Botanical Gardens and a village feel that is incredibly desirable with residents.

Edgbaston is also the closest neighbourhood to the University of Birmingham, making it popular with both students and workers who are looking for somewhere to rent near the main campus.

If you’re an investor considering an opportunity in Edgbaston, you’ll find prices are typically more expensive, which limits rental yields somewhat, but the area’s reputation is unmatched with people who know Birmingham.

It also has several different demographics that typically live there, including young families, couples looking to downsize and students, meaning it suits several different investment strategies.

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Best places to invest in Birmingham: Gun Quarter

  • Average Property Price: £282,400
  • Average Change in Price YoY: 11%
  • Average Rental Yield: 4.78%
  • Price Forecast (2024 – 2028): +24%

Located between the Jewellery Quarter and the city centre, the Gun Quarter is on a very similar trajectory to its sibling neighbourhood, the JQ.

The area is currently experiencing extensive regeneration, but is rapidly establishing itself as a top destination for investors seeking high capital growth from a relatively accessible entry point.

Locals tend to split the Gun Quarter into two areas: the residential area near the Jewellery Quarter and the student area near Aston University. This has almost created two different options for investors, depending on what and who you’re looking to invest in.

While it may be a while before the Gun Quarter establishes a reputation as desirable as the Jewellery Quarter, it’s a fantastic opportunity for investors who want to get in on the ground floor and invest in an up-and-coming postcode that will benefit from larger infrastructure projects such as HS2.

Best places to invest in Birmingham: Brindleyplace

  • Average Property Price: £236,200
  • Average Change in Price YoY: 1%
  • Average Rental Yield: 6.45%
  • Price Forecast (2024 – 2028): +24%

While Brindleyplace can be included as part of the city centre, we’ve separated it for this 2026 list due to a number of reasons.

Firstly, we’re increasingly seeing several developments specifically located within Brindleyplace, helping establish the area as a true destination.

Secondly, Brindleyplace has built its own community with its own business sector and nightlife. Several larger companies have already moved to the local area, and Brindleyplace itself is home to a huge number of bars, coffee shops and restaurants, including high-street favourites and independents.

Thanks to a mix of affordability, demand and local amenities, Brindleyplace is achieving a fantastic average rental yield of 6.45%, ensuring it’s a top pick with those looking for long-term gain.

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