Table of Contents
Property Listing in Birmingham
- Birmingham
Deposit
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Yield
Property Price
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Why Invest in Serviced Apartments in Birmingham?
Located in the heart of the West Midlands, Birmingham is a city on the rise, and if you’re looking to invest in property, serviced apartments in Birmingham should be on your radar.
The city is the UK’s second-largest city and is growing rapidly with regeneration projects such as the £1.2 billion Paradise redevelopment and the £1.9 billion Smithfield Birmingham project and population.
Investing in serviced apartments offers a great way to generate passive income, benefit from capital appreciation, and cater to a growing rental market that’s hungry for flexible, comfortable accommodation.
Serviced apartments, in particular, are in high demand, especially with business travellers and tourists looking for more than just a standard hotel room.
Growing Demand for Serviced Apartments
In the past few years, the demand for serviced apartments in Birmingham has gone through the roof. Over 41 million people visit every year, so it’s not a surprise that more people are looking for serviced flats instead of hotels.
They give you freedom, extra spaces, and often great features like kitchens, free WiFi, and parking that tourists love. People who are travelling for business like them because they want more than just a bed for a few nights. They want a place that feels like home.
Also, people always explore short-term housing in busy business areas like Birmingham’s City Centre and the NEC.
Higher Rental Yields
When looking at rental yields, serviced apartments are often a better choice than other traditional-type properties. For example, the average rental yield for a standard buy-to-let property in Birmingham is around 5–6%, but serviced apartments can push that up to 7–10%, especially in hot spots like the Birmingham city centre or Jewellery Quarter.
Sources: https://www.ons.gov.uk/visualisations/hou singpriceslocal/E08000025/
Investors can benefit from higher nightly rates, and the demand for short-term lets—whether from tourists or business travellers—helps maintain a strong rental income. Birmingham serviced apartments are typically priced higher per night than a long-term rental, but because they’re in such demand, vacancy periods are usually short.
Birmingham as a Business Hub
A big reason for the growth of serviced flats in Birmingham is that it is a major business centre. A lot of business people come and go for meetings, projects, and events since big names like HSBC, PwC, and Deutsche Bank are there.
The International Convention Centre (ICC) alone holds over 400 events and more than 350,000 people come to attend. Moreover, about 3 million people visit the National Exhibition Centre (NEC) annually, many of them especially for conferences and business-related activities.
In fact, the city is the most famous conference city outside of London. Investors can count on a steady flow of high-paying guests thanks to this steady flow of business visitors.
Flexibility and Increasing Popularity of Short-Term Lettings
When discussing the growing popularity of short-term rentals, serviced apartments are ideal. More individuals are searching for flexible accommodations, whether they are for a single night or several months, because of websites like Booking.com and Airbnb.
Source: England Hotel Occupancy Latest Report
Birmingham’s short-term rental market has seen occupancy rates of around 85%, which is above the national average, so it’s clear that serviced apartments are filling a gap. Whether they’re business professionals or tourists, people want the flexibility of short-term lets, and that’s where serviced apartments shine.
High-demand areas like the Jewellery Quarter and Digbeth are prime spots for this type of accommodation, as they offer not only ease but also a trendy, appealing environment for visitors.
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Lower Management Hassle with Professional Services
Investors love serviced apartments because they’re often easier to manage than traditional rentals. Most serviced apartments here come with professional management services that handle everything, from weekly housekeeping to check-in and guest relations.
This means investors don’t have to worry about the day-to-day upkeep, which can be a headache with standard property types. When you offer free Wi-Fi, it makes the flats even more appealing to guests, which makes it easier to keep them booked. If you want to invest in something without having to do much, serviced flats might be a great choice.
Top Areas to Invest in Serviced Apartments in Birmingham
When you want to get the most out of your money, choosing the right location is very important. There are several areas in Birmingham that are great places to invest in serviced apartments because they have high rental returns, a lot of guests, and room for capital growth.
Below are the top areas we recommend, along with average house prices and expected rental yields.
Birmingham City Centre
The Birmingham city centre is by far the most popular area for serviced apartment investment. With landmarks like Cathedral Square, Birmingham Museum & Art Gallery, Symphony Hall, and the Bullring shopping centre, it’s the first choice for tourists and business travellers alike.
Centrally situated and with great transport links, such as to Street Station, it’s just a perfect place.
- Average House Price: £300,000 (for flats)
- Rental Yields: 7–9%
- Target Audience: Business travellers, tourists, professionals
- Why Invest: High demand, strong occupancy rates, prime area near major attractions
Jewellery Quarter
The Jewellery Quarter is a trendy, upmarket area that offers a mix of historical charm and modern amenities. It’s well-known for its creative community, independent restaurants, and unique shops, and bars, attracting young professionals and tourists looking for a unique stay.
- Average House Price: £270,000 (for flats)
- Rental Yields: 6–8%
- Target Audience: Young professionals, tourists
- Why Invest: Trendy location, proximity to the city centre, rising demand for character properties
Digbeth
Digbeth is a rapidly growing, culturally vibrant area that’s attracting a lot of attention from younger tenants and creative professionals. Known for its street art and alternative scene, Digbeth is just a stone’s throw away from the city centre, making it a top site for Birmingham’s serviced apartment investment.
As the area undergoes further regeneration, property prices are expected to rise, making it a good option for investors looking for both rental income and capital appreciation.
- Average House Price: £230,000 (flats)
- Rental Yields: 8–10%
- Key Attractions: Custard Factory, street art tours, Digbeth Dining Club
- Target Audience: Creatives, tourists, young professionals
- Why Invest: Fast-growing, edgy cultural scene, lower prices with high yields
Edgbaston
Edgbaston offers a quieter, more residential vibe compared to other areas here but still remains close enough for accessibility. Popular for its greenery and upscale feel, this area attracts guests like long-term business travellers looking for a relaxing stay.
- Average House Price: £425,000 (for houses and large flats)
- Rental Yields: 4–6%
- Target Audience: Families, long-term business travellers
- Why Invest: Upscale residential feel, consistent demand from professionals and families
Near Birmingham Airport and NEC
Investors looking to attract corporate clients should focus on areas near Birmingham Airport and the NEC. These areas are always bustling with business travellers, conference attendees, and professionals on short-term work assignments.
- Average House Price: £280,000 (for flats and houses)
- Rental Yields: 6–8%
- Target Audience: Corporate travellers, business professionals
- Why Invest: Constant demand from business travellers, excellent transport links, reliable rental yields
How You Can Maximise Rental Income from Serviced Apartments
Maximising rental income from Birmingham serviced apartments is not just about owning a great property. It involves strategic planning and providing services that meet the needs of your target market.
In Birmingham, where demand for more serviced apartments is high—especially from business travellers—specific approaches can help ensure a steady income and top-notch reviews.
Location is Key
There is no way around it: location is the most important thing that determines whether you’ll make money or not when investing in real estate.
If your apartment is located near key locations like the City Centre, the Jewellery Quarter, or public transportation like Street Station, it will naturally have an advantage. Guests prefer convenience, whether it’s for business or leisure.
Think about it—if you were a business traveller, you’d probably want to take a room near your meetings, or if you’re visiting the city for leisure, being just a short walk away from the Museum or the Bullring makes your stay more enjoyable.
Not only does choosing the right area help with rental rates, but it also lets you charge more because of the high demand in those areas.
Offering Premium Amenities
These days, guests expect more than just a place to sleep. Free Wi-Fi, safe parking facilities, and access to a fully equipped kitchen can make your apartment stand out. Offering a little extra can make a huge difference—think about features like a Juliet balcony or a well-set-up dining area.
Small touches such as providing fresh towels and having weekly housekeeping can turn a good stay into a great one. Guests are willing to pay more for comfort and ease, especially those staying for extended periods.
Business travellers especially appreciate these amenities, as they often explore locations that make them feel more at home rather than just a temporary stay.
Professional Property Management
It can save you a lot of time and trouble to hire a professional property management company. They’ll take care of everything from check-ins and cleaning to repairs and guest communications. This is very helpful if you live outside of Birmingham or are in charge of more than one property.
These services help maintain your flat and ensure guests enjoy their stay. Many management companies also help with setting the right pricing. This way, you can maximise profits while remaining competitive. When you want to bring in business tourists or people who want to stay longer, this can make a big difference in something like Birmingham.
Targeting Corporate Stays
Because Birmingham is a major business hub, focussing on business travellers is a smart way to spend your money. Many well-known companies are here, such as HSBC, Deutsche Bank, and PwC.
This means that people who come to work, visit clients, or hire contractors always need houses to stay in. When business guests come, they usually look for long-term stays. This keeps the rooms filled and the income steady.
To get these people, your serviced apartment should have things that they need, like fast, reliable Wi-Fi, a quiet place to work, and safe parking. People in this group are especially interested in apartments in or near the City Centre or business areas. Longer stays mean less change and more stable cash flow, which is good for investors.
Leveraging Short-Term Letting Platforms
If you want to keep your property booked year-round, listing it on platforms like Airbnb, Booking.com, or even Vrbo is essential. These websites let people all over the world see your flat, which is especially helpful in a city like Birmingham that has a lot of business and pleasure travellers.
Serviced flats that are listed on these sites tend to have high occupancy rates (about 85% on average) as we’ve already mentioned earlier, so it is important to be on them.
Putting your house on the market isn’t enough; you need to make it stand out. Invest in professional photos and make sure that your offering highlights important features like free Wi-Fi and closeness to places of interest like the Museum of Birmingham or the Bullring shopping centre.
Your goal is to make your listing look good so that people who are looking for a place to stay choose yours over others.
Regular Maintenance and Updates
Keeping your serviced apartment well-maintained is crucial for both attracting guests and justifying higher rates. Regularly updating your apartment doesn’t have to mean full renovations, but simple things like repainting, replacing worn furniture, or upgrading kitchen appliances can go a long way in keeping the space fresh and inviting. Guests are more likely to leave positive reviews if the room feels clean, modern, and well-cared for.
When guests leave positive feedback about your property, it makes your listing more visible on booking sites, which brings you more guests. Maintenance isn’t just for looks; it also stops bigger problems before they happen, which saves you money in the long run. If you keep your leased apartment in good shape, you can charge high prices and get guests who are willing to pay that much.
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
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How the Serviced Apartment Market Will Change in the Future
There are always new trends in the serviced apartment market, and owners who stay ahead of them will make the most money. Birmingham, with its growing economy and strong tourism, is set to benefit from these shifts.
Whether it’s the rise in corporate travel, an increase in staycations, or the growing demand for sustainable living, keeping an eye on the future will help you make smart investment choices.
Growth of Business Travel and Corporate Stays
In Birmingham, business travel doesn’t look like it will slow down any time soon. Large companies such as HSBC, PwC, and Deutsche Bank have a strong presence and as a result, there is always a growing need for serviced apartments that cater to business workers.
Business travellers are a good target market because they usually stay longer, want extra space, and are ready to pay more for comfort and ease of use.
Since according to the World Travel and Tourism Council (WTTC) and other industry analyses, business travel is expected to grow by 5.5% a year, it’s clear that investors should focus on this area.
The important thing is to make sure that your serviced apartment has features that will appeal to this group, like fast internet, places to work and easy access to business hubs in Birmingham City Centre.
Rising Popularity of Staycations
Since the pandemic, staycations have seen a surge in popularity. There are a lot of people who choose to travel within the UK instead of going abroad. Many choose Birmingham because it has a lot of cultural past, great shopping, and a lively food scene.
Sources : https://www.simplybusiness.co.uk/knowl edge/general/uk-staycation-search-trends/
A steady stream of tourists come to see the Museum and the Bullring shopping centre. These tourists want to have fun and feel comfortable, and serviced apartments give them that. They feel more at home than when they stay in a hotel.
Staycations are becoming more popular, and if you have a managed flat in a good area with all the mod cons, you can take advantage of this trend.
Increasing Demand for Flexible Living Options
One growing trend is living in a way that fits your needs. This is especially true as more people work from home. To avoid being locked into long-term rental deals, many professionals, digital nomads, and even families are looking for pleasure short-term places to live.
Serviced apartments are great for this new way of life because they combine the comforts of home with the fun and freedom of short-term stays.
Birmingham is perfect for this market because it is in the middle of everything and has great transport links. For investors who can meet these flexible living needs by providing customised packages or flexible rental terms, this growing group of tenants will be easy to draw.
Sustainability and Smart Home Integration in Serviced Apartments
These days sustainability isn’t just a fancy; it’s a must. More and more people are looking for eco-friendly places to stay, and serviced apartments are a good choice. Getting people who care about the environment can be as easy as getting them to use tools that use less energy, set up recycling centres, and use less water.
On top of that, integrating smart home technology—things like keyless entry, smart thermostats, and lighting—can not only improve the guest experience but also reduce your property’s running costs.
As guests become more concerned about the environment, leased apartments that follow this trend are likely to get more bookings and better reviews from guests.
Conclusion
Investing in serviced apartments in Birmingham is a great chance for property investors looking to get into a growing market. The city’s continued regeneration and its status as a major business hub attract a steady stream of both corporate and leisure guests, particularly in high-demand areas like Birmingham City Centre and Jewellery Quarter.
Offering premium amenities, such as secure parking and free Wi-Fi, along with a well-maintained property, can increase rental income significantly.
Partnering with a professional property management company like Flambard Williams can help you streamline operations and reduce the hassle.
As the demand for short-term lets and flexible living options continues to rise, and with trends like sustainability becoming more important, investing in serviced apartments in Birmingham provides a great chance for strong rental yields and long-term returns.
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I’m Ben, I’ve worked as a senior broker here for quite a stretch, witnessing numerous success stories unfold!
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