The Octagon: Transforming Birmingham’s Residential and Investment Landscape

Posted by Colliers on 24th October 2024 -

At the forefront of this change is The Octagon, a landmark residential tower that is not only reshaping urban living but also attracting substantial real estate investment. This iconic structure is key to Birmingham’s residential and wider real estate investment scene, positioning the city as a prime destination for both residents and investors.

A new chapter for Birmingham’s economy

The Octagon’s impact extends far beyond its architectural innovation. As the world’s tallest pure octagonal residential tower, standing at 155 metres, it is now Birmingham’s highest building. More importantly, its completion signals a turning point for the city’s economy, attracting international investors and stimulating local and regional growth.

Backed by Singapore’s City Developments Ltd (CDL), The Octagon represents one of the most significant foreign investments in the UK’s regional markets in recent years, strengthening Birmingham's global profile. This investment is part of the £1.2 billion Paradise estate regeneration, which aims to create a sustainable urban environment with a mix of commercial, residential, leisure and public spaces. The overall project will deliver thousands of new jobs, boost the local economy, improve pedestrian links and further enhance Birmingham’s appeal to both national and international occupiers, employers and investors.

Birmingham’s Competitive Edge in Residential Investment

In Colliers’ Top UK Residential Investment Cities H1 2024 report, Birmingham ranks highly in several key metrics compared to other major UK cities. It has the fourth largest UK city by population size and has a significant number of university students thanks to its top performing universities, including the University of Birmingham, Aston University, Birmingham City University, University College Birmingham and Newman University. This makes it a compelling choice for investors seeking long-term value in residential property markets. Birmingham also performs well for the availability of schools in the city and residents have a strong income to rent ratio (with the city ranking seventh highest across the 20 we analyse). While house price affordability in Birmingham is average, with cities like Liverpool, Sheffield, and Leeds being more affordable, Birmingham’s diverse strengths make it a standout option for strategic investment.

Driving demand and changing the market

As The Octagon nears completion in 2025, it will introduce 370 one-three-bedroom high-quality Build-to-Rent homes to the market. Its prime location and innovative design are expected to boost rental demand and values in the area, as more high-end developments follow.

This could attract new occupiers, including professionals seeking premium living spaces, downsizers looking for modern urban living, to businesses drawn to Birmingham’s growing economic appeal. Designed by Birmingham-based Howells Architects, the tower’s unique octagonal shape ensures that each of the 370 Build-to-Rent homes benefits from larger, wider, and lighter living spaces compared to conventional high-rise apartments. This innovative design maximises natural light and offers residents stunning panoramic views of the city and beyond.

The building’s prime location at the northern apex of the Paradise site, overlooking Summer Row and the Jewellery Quarter, adds to its appeal. The lower and upper ground floors are dedicated residents’ areas and will host a variety of amenities, including wellness facilities, social spaces and convenience supplies, all fostering a sense of community and well-being among residents.

A symbol of Birmingham’s ambition

Developments like The Octagon are a symbol of Birmingham’s ambition and growth and are helping to portray a positive, vibrant, forward-thinking hub for inward investment and lifestyle. The city is rapidly emerging as a major player on the international stage, competing with other European cities. The completion of The Octagon only cements this status, making Birmingham a focal point for both domestic and international real estate relations.

The Octagon’s innovative design, prime location, and sustainability make it a true landmark development. As Birmingham evolves, The Octagon will elevate the city's profile as both a residential and investment hub, symbolising its ambition and contributing to wider economic growth while drawing in renters, investors, and businesses alike.