Bristol – A Property Market Rally Powered By Its Growing Economy

Bristol – A Property Market Rally Powered By Its Growing Economy

Bristol, a city in the United Kingdom, is currently demonstrating its prowess in the real estate market. According to the BBC, the average yearly growth in rental costs in the UK is 12.3%, although Bristol has outpaced this by an average of 12.9%. The city surpasses the entire country, indicating that it is experiencing rapid organic growth. This could be due to the UK's regional real estate sector's record-breaking investment of £33.2 billion in 2021, which included £3.1 billion for Build-To-Rent (BTR). House prices in Bristol are also rising. According to Rightmove, the average house price in Bristol is currently £367,995, a 3% increase over the previous year and a 17% increase over 2019. According to Bristol 24/7, property prices in Bristol have risen by a phenomenal 68% over the last ten years. While the next decade may not approach this figure, based on many of the causes outlined in this article, Bristol is one of the few places projected to rise exponentially. According to the Bristol Post, the average time it takes for a house to sell on the market between listing and having an offer accepted is only 19 days. With Bristol being the most popular city in this region, expect a comparable, if not shorter, period to sell houses. VeriSmart reports that Bristol has the highest rental demand outside of the London commuter zone. This demonstrates how desirable properties are in Bristol.

While the rise of the housing and rental markets are the two primary factors driving Bristol's surge in the UK property market, there are numerous other elements that contribute to the city's status as a property hotspot. In this post, we will look at what makes Bristol appealing to many investors and home purchasers as a place to live or invest.

Economy

The city of Bristol is known for having one of the strongest economies in the UK. Bristol boasts a highly skilled workforce that is critical to the city's economic prosperity. According to Aspen Woolf, the employment rate in Bristol is 76%, which is higher than the UK average of 70%. Job employment and possibilities are usually a driving element for a region's property demand; Bristol is in the upper tier of employment, therefore this will stimulate the house market. Bristol's commercial sector is growing since it is home to numerous major companies in the engineering and technology industries. The city is home to Rolls-Royce, Airbus, OVO Energy, and Aardman Studio.

Because of the success of start-up enterprises, Bristol has become increasingly appealing to start-ups and entrepreneurs. Bristol start-up enterprises have one of the greatest survival rates in the country, at 60.6%. This achievement can be attributed to a continual influx of elite talent from the area's world-class educational institutions. Bristol's technology industry is another high flyer; compared to the national average of 14%, the city's technology sector has grown by 38% in the last several years, nearly double the national rate.

According to Business Live, Bristol's economy is expected to grow by £500 million and create around 10,000 new jobs by the end of 2023. Ongoing regenerations are likely to contribute to this as new opportunities open up for populations, which we shall look at next.

Regenerations

Bristol City Council created a five-year spending plan in 2020 with the goal of building new homes and regenerating areas. The Temple Quarter is in the forefront of this, with a target of creating 10,000 new houses, 22,000 new jobs, and bringing £1.6 billion in yearly revenue to the city economy. Temple Quarter is centrally placed in Bristol, allowing people and businesses to coexist within residential, commercial, leisure, and cultural zones, thereby creating a dynamic 24-hour economy that works for everyone. Bristol Temple Meads will be revitalised with homes, stores, and outlets, creating a new section of the city that is appealing to live in and socialise in.

The dedicated railway line from Temple Meads Station to the north and south of England is a main focal point in this project. The final goal for this phase of the project is to guarantee the railway provides links to London and Wales, as well as the north and south of England. One major objective is to cut journey times to London by 50% while increasing service frequency and capacity. These adjustments would provide a significant boost to Bristol's commercial and working sectors, providing for additional job opportunities and ease of access via commute.

A new campus is being planned, with the purpose of bringing together world-class academic, industrial, and entrepreneurial talent. Temple Quarter Enterprise Campus seeks to establish new partnerships and research collaborations with global businesses and elite professionals in order to spur innovation. It will be regarded as an important arena for the UK's digital economy. This campus is scheduled to open in 2025.

Workforce

Bristol has a robust and broad range of job areas and possibilities. The workforce in Bristol is highly skilled, and the city has a strong pipeline of potential employees. Bristol's industries include aerospace engineering, creative and media, digital and technology, life sciences, and financial and professional services.

Compared to other UK cities, Bristol has a substantially higher demand for employees. Many job searchers and recent graduates are drawn to the range of work options and cross-sector chances available. The University of Bristol has a strong graduate employment record, ranking seventh in the UK for graduate employability. They offer a variety of courses with placement opportunities and postgraduate schemes, allowing students to gain industry experience and jumpstart their career in their desired field.

As the pandemic subsided two years ago, Bristol's IT sector experienced a surge in demand and investment. According to Business Live, Bristol is home to 430 tech companies, including household names like BT, Amazon, and Vodafone. The average wage in the IT industry was £51,685, which was £15,000 higher than the city's average salary at the time.

Attractions

The liveliness and tourist attractions of a city have a significant impact on the population's decision to live there full-time. Bristol is no stranger to tourism, as it is home to one of the best harbours in the United Kingdom. Bristol Harbour, home to Bristol City Docks, sometimes known as the "Floating Harbour," is the main draw here, with several museums, galleries, entertainment, and food options. The harbour itself is 70 acres in size and is fairly large to explore.

Bristol is also home to the historic Clifton Suspension Bridge, which is internationally recognised as the city's symbol and one of the best landmarks in the UK. This bridge, which opened in 1864, is an outstanding achievement of Victorian engineering and has been a popular tourist attraction for the past 150 years. The Bristol Museum and Art Gallery, a well-known tourist destination, exhibits many ancient Egyptian and Assyrian artefacts. People who are interested in art and history will be captivated by what the museum and art galleries have to offer.

Cabot Circus, Bristol's infamous shopping centre known for its unique glass panelled roof, is the city's principal retail attraction. This mixed-use development combines the attractiveness of retail and commercial sectors, offering consumers a very vibrant experience. It houses over 120 high-street fashion and designer labels, as well as offices, hotels, residences, and a cinema.

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