From Underdog to Prime Performer: Digbeth Rental Yields and Growth in 2025

Birmingham has long been known as the city of 1000 trades and so too the rental market in Birmingham has long been a well integrated network of micro-markets, each offering a distinct balance of capital growth, rental yield, and tenant demand. For years, areas like the Jewellery Quarter, City Centre and Edgbaston have consistently topped investor lists for headline yields and luxury quality. Yet in 2025, Digbeth is carving out a new chapter, emerging as a vibrant hub that complements the city’s established hotspots.

While Digbeth may not currently top the city’s yield charts, its 48% capital growth over the past five years has triggered a wave of investor interest. Regeneration is reshaping the area’s skyline and unlocking long-term value, drawing attention from UK and international investors seeking high-performing, sustainable assets.

Digbeth’s Performance Story: 5 Years of Transformation

Between 2020 and 2025, Digbeth delivered one of not just Birmingham’s strongest capital growth performances – but nationally too, with a 48% rise in property prices. This signals a market rapidly gaining ground with renters and investors alike.

That growth has been underpinned by a pipeline of major regeneration projects, including:

• £11 billion in planned infrastructure and regeneration across the wider Digbeth area
• £1.9 billion Smithfield masterplan, introducing new homes, retail, public spaces, and cultural assets
• HS2’s Curzon Street Station, connecting Digbeth to London in under 50 minutes
• BBC’s new headquarters, adding creative industry jobs and footfall
• A £5 million BOXPARK investment, boosting Digbeth’s leisure and lifestyle appeal

This regeneration has powered a 20% uplift in rental values over five years, driven by young professionals, creatives, and media talent attracted to Digbeth’s unique blend of connectivity and culture.

For investors, this means strong capital growth, rising rental income, and a robust tenant profile supporting long-term resilience.

The Yield Landscape: Future-Proofing the Investment Case in Digbeth 

Though Digbeth doesn’t top Birmingham’s yield tables today, it offers a rare balance of steady rental income and rapid capital growth: (Property Data)

Digbeth and the Jewellery Quarter both stand out as strong investment options in Birmingham. Digbeth delivers competitive yields combined with the highest price growth in the city, a balance driven by extensive regeneration and a dynamic tenant base. Meanwhile, the Jewellery Quarter continues to provide solid yields and steady capital appreciation, maintaining its reputation as a well established and premium investment location.

The Tenant Picture in Digbeth

Tenant demand is central to Digbeth’s investment case. According to PropertyData:

• 50% of the local population is aged 20-34
• The average household owns just 0.5 vehicles, well below the national average – supporting walkable, commuter-friendly living
• Birmingham has a graduate retention rate of 34%, with 28% of these graduates entering the education sector each year (54% above the UK average – Savills)

This points to a young, mobile, and professionally rooted tenant base – ideal for long-term rental stability.

Short-Term Yield vs Long-Term Gain: Digbeth’s Investment Case Unpacked

In property investment, the best strategies aren’t always about chasing the highest yields, they’re about understanding where the market is going next. Investors who balance short-term returns with long-term growth potential are often the ones who see the biggest wins over time. When it comes to Birmingham, few comparisons make the trade-off clearer than Edgbaston vs Digbeth. 

If you are focused solely on cashflow today, Edgbaston still performs. Its headline yields remain strong, and for some investors, that level of income may meet immediate objectives. However, capital values in the area have declined over the past five years, suggesting limited long-term upside. For those building a portfolio geared toward future-proofed returns, Digbeth presents a stronger case.

This is not simply a postcode comparison. It is a strategic decision that reflects how investors interpret the next phase of Birmingham’s growth:

• Do you want yield today, or value tomorrow?
• Are you backing established rental zones, or investing in Birmingham’s next cultural and commercial centre?

Smart capital is already flowing into Digbeth, driven by large scale regeneration, improved infrastructure, and a rapidly evolving tenant base.

The question now is not whether Digbeth will outperform, but whether you will move early to maximise the opportunity, or wait and pay a premium later.

A Real Example: Why Some Developments Are Outperforming in Digbeth

Regeneration projects like the Custard Factory and Smithfield are outperforming because they create vibrant, mixed-use environments that directly boost the local area. By situating high-quality office, retail, and cultural spaces near key transport links, they attract creative and professional tenants, increase footfall, and support local businesses. 

These projects also enhance the neighbourhoods cultural identity, provide employment opportunities, and encourage further investment – helping to revitalise and sustain economic growth in the surrounding community. 

That is why developments positioned near these anchors are thriving. Emerald Court, for example:

• Sits minutes from both the Custard Factory and Curzon Street station.
• Prices start from £229,775 with gross yields up to 6%.
• Targets tenants who are professionals in tech, media, and education.
• Is well placed to capture both immediate rental demand and long term capital uplift.

Together, these factors make Emerald Court a smart, future-proof investment that aligns perfectly with Digbeth’s dynamic growth and evolving rental market.

Beyond 2025: The Trends That Will Shape Digbeth’s Investment Potential

To maximise returns, investors should keep three key factors in view:

1. Timing the Entry Point

Digbeth is undergoing a major transformation, but it remains early in its regeneration cycle compared to other established areas of Birmingham. This timing presents a strategic opportunity for investors to enter the market before pricing catches up with the area’s full potential. 

With major projects like the BBC’s new headquarters, the Digbeth Loc. Studios, and HS2’s Curzon Street Station still in progress, property values are expected to climb further as these developments reach completion. Acting now allows investors to secure assets at more attractive valuations, while waiting could mean missing out on some of the strongest capital growth opportunities in Birmingham.

2. New Build Premiums and Yield Profiles

New developments often have lower initial yields but offer:

• Higher-quality amenities
• Lower maintenance costs
• Stronger tenant appeal

Take Emerald Court, for example. This boutique development offers 29 high-specification one- and two-bedroom apartments in the heart of Digbeth. With prices starting from £229,775, Emerald Court provides investors with a prime opportunity to acquire modern, well-located assets in a rapidly growing area.

3. Financing Landscape

Lending remains tighter in 2025, but Digbeth’s 6% gross yields help investors comfortably meet affordability tests and maintain healthy cash flow, even at conservative LTVs.

The Real Question Isn’t Whether Digbeth Works – It’s Which Assets Do

Digbeth is no longer the underdog – it’s setting the pace. Pricing now reflects a market that is maturing, supported by ongoing regeneration, improved infrastructure, and growing demand from a professional tenant base.

The opportunity lies in selecting the right assets that deliver sustainable returns. The best opportunities combine:

• Tenant demand supported by nearby employment hubs

• Professional management teams who maintain high standards and keep occupancy consistent
• Quality amenities that attract tenants willing to pay a premium for lifestyle and convenience
• Low and sensible running costs that protect your cashflow against unexpected expenses

Investing in the right property is what separates those who solely participate from those who profit.

Emerald Court is a prime example of this approach in action. Located just minutes from the Custard Factory and Curzon Street station, it offers 29 boutique apartments designed for Digbeth’s tech, media, and education professionals.

As Birmingham changes, your investment strategy should too. Whether you prefer the heritage of the Jewellery Quarter or the energy of Digbeth, success comes from knowing where returns will come from and acting before the market shifts.

Explore The Next Wave Of Investment In Digbeth

If you’re ready to position yourself in one of Birmingham’s fastest-rising markets, Emerald Court offers an exceptional entry point.