As one of the most important business regions in the UK, Birmingham has received a further lift with the news of Goldman Sachs opening an office there. And the city’s economy is forecast to recover strongly from recent uncertainty.
Global investment bank Goldman Sachs is the latest company to announce they are opening an office in Birmingham, bringing hundreds of jobs to the city. This expansion will be the company’s biggest office in the UK outside of London. Additionally, this is on the back of the investment bank expanding into other tech hubs across Europe.
The office will likely open by the end of 2021. Goldman Sachs is planning to initially use a prime shared office space in the city centre. Then, the office will move to a more permanent location later on.
Richard Gnodde, chief executive officer for Goldman Sachs International, says: “Establishing a new office in Birmingham will diversify our UK footprint and give us access to a broad and deep talent pool in the local area. We see tremendous opportunity to enhance our UK presence and continue delivering for our global clients.”
This further shows there is confidence in Birmingham and the West Midlands as a global business location. With a growing talent pool and strategic location in the UK, there are a growing number of large companies relocating there, further increasing the area’s potential.
Strong economic recovery
A new economic report forecasts that Birmingham will be one of the fastest cities to recover from COVID-19 and Brexit uncertainties. This is according to the UK Powerhouse Report by the Centre for Economics and Business Research and Irwin Mitchell. Out of 50 cities, it predicts Birmingham will make the ninth fastest recovery year-on-year with a GVA growth of 7.1%
In Q4 2020, Birmingham was in 17th place. The city and wider region are expected to benefit from a particularly positive economic output as lockdown restrictions continue to ease in the coming months.
The report states only 36% of cities are forecast to increase employment levels after the end of the furlough scheme. However, Birmingham is already following some of the key recommendations in the report for improving business prospects. This provides the grounds for optimism in the city’s recovery.
Chris Rawstron of law firm Irwin Mitchell comments: “This latest UK Powerhouse report paints a positive economic picture for Birmingham and the wider West Midlands regions as we emerge out of lockdown.
“Being in the top performing cities in terms of economic output should provide the scope needed to act on the recommendations and be ready to further stimulate the local jobs market once the furlough scheme comes to an end.”
Strong investment prospects
Major businesses continue to choose Birmingham as a key office location. In recent years, BT, HSBC, KPMG, Barclays and PwC UK have expanded in the city. As this continues, the investment potential of the city grows even more.
With Birmingham hosting the 2022 Commonwealth Games, major investment and development is coming to the area. The city and wider region will benefit from £778m worth of investment from the government to stage the event.
This will bring forward more exciting developments in the city, further improving this top business region. Additionally, the region is benefiting from major transport investment. The HS2 could arrive in the city during the late 2020s.
Birmingham’s rising position as a global city will bring more people and businesses to the thriving and resilient city. This will also further boost the city’s property market, making it an appealing city to live, work and invest in.
Take advantage of the business boom in Birmingham. At BuyAssociation, we have a number of property investment opportunities across the city, including the highly anticipated South Central development. To find out more, get in touch.