A First-Class Destination: How HS2 will Revolutionise Birmingham

Posted by Colliers on 13th June 2023 -

The arrival of HS2 as a transformative initiative by the Government, aimed at connecting major cities in England and boosting growth in the Midlands and North regions, has become a controversial platform that traverses our business landscape… but can we hope for a successful journey for Birmingham? 

The project's spiralling costs have resulted in long delays spanning two decades for northern regions, with some cities not even receiving a line. However, Birmingham, as part of phase one of the high-speed rail line is on track to start running within a decade. One of the main highlights of this initiative is the Government's commitment to strengthening the thriving city. By reducing travel time between Birmingham and London to just 49 minutes, HS2 will make the city more accessible to a new working market. 

Let's explore other ways HS2 will benefit Birmingham.

Return of big business

Birmingham is already reaping rewards from businesses moving offices to the city as occupiers increasingly understand the cost-saving benefits of relocating. For example, global investment bank Goldman Sachs has secured a long-term lease agreement for permanent office space at One Centenary Way, HSBC has returned its retail bank head office to Birmingham, and HMRC has secured a major let in Arena Central. This relocation or addition of offices to Birmingham will help improve collaboration between major industry players and provide businesses with opportunities to offer their services to a larger physical market. 

Opportunities for leisure and retail sectors  

The rise in office lets is set to create a positive atmosphere in the city, boosting demand for space and facilitating regeneration while reducing the number of long-term vacant commercial properties. This growth will also contribute to the expansion of the service sector. Office occupiers will require more than just workspace; they will seek lunch spots, restaurants for client entertainment, networking zones, and social spaces to meet friends. These increased activities will generate opportunities for various businesses, including dry-cleaners, hairdressers, barbers, and nail technicians.

In addition some retail spaces have undergone repurposing, giving rise to interactive football bars like Toca Social. The introduction of HS2 has the potential to sustain the momentum of these innovative concepts. West Midlands Combined Authority’s HS2 Growth Strategy for 2021 is focused on promoting regeneration around the station at Curzon Street and the Digbeth areas, sending a clear signal to the global market that Birmingham is thriving.

Furthermore, Birmingham has already proven its potential as a host for major sporting events like the Commonwealth Games. HS2 is expected to have a significant impact on the leisure sector, leading to the construction of new hotels, restaurants, and other attractions. With the growing population, there will be an increased demand for leisure activities, including gyms and sports facilities, resulting in more job opportunities and improved overall quality of life for residents.

Residential expansion and a 10-minute neighbourhood 

HS2’s impact extends beyond the commercial sector, with the residential market already seeing an uptick in investments in areas surrounding stations like the interchange in Solihull. With quick transport to and from the city, land and homes in these areas are a fraction of the cost compared to the city centre, allowing for increased residential growth. 

HS2 presents Birmingham with the opportunity to create a walkable city centre, where essential services, work, shops, schools and healthcare, are easily accessible within a short distance, encapsulating the concept of a 10-minute neighbourhood. By placing access within easy reach, HS2 has the potential to transform Birmingham from a sprawling and dispersed city into a dynamic hub. This will foster a sense of community and connectivity, encouraging residents to embrace walking and cycling as their preferred modes of transportation and making the city more sustainable, less congested and improving air quality. 

Overall the benefits of the HS2 project will have far-reaching implications for both businesses and residents alike. Reduced travel time between major cities, regeneration and improved residential areas will enhance the cities accessibility and generate a ripple effect through the local economy.

Read article on Colliers website 

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