Commercial property buoyant despite political uncertainty

The Northern Ireland commercial property market continues to be resilient despite ongoing political uncertainty, according to CBRE.

Recent research by the firm also identified that the Northern Ireland commercial investment market has been largely dependent on GB and international investment spend, according to the most recent investment analysis.

“The current political situation has no doubt had some negative impact on the local economy and commercial property market, and will continue to do so should the Stormont stalemate persist,” said CBRE MD Brian Lavery.

“During an unsettling period of political uncertainty, the continued future growth of the commercial property market in Northern Ireland is reliant on a fully functional local Government being put in place.”

Whilst Northern Ireland investors represent a high number of transactions, GB and international investors has made up 87% of the £1.64bn spend over the last five years from 2013 to 2017.

“During the 80’s, 90’s and 00’s, the commercial property market in Northern Ireland was dominated by local investors, however after the financial crisis of 2008 we have seen a resurgence of investment from outside the region,” said CBRE director Gavin Elliott.

“In relation to Brexit, it is important that Belfast takes full advantage of its unique position between Dublin, London and Europe to drive further growth through real estate investment funds in GB and further afield.

“The market should be well placed for further future GB and international investment following the deal agreed between the Conservative Party and the DUP, which secured an additional £1bn funding for Northern Ireland.

“Furthermore, the Belfast City Region Deal and the £100m Northern Ireland Investment Fund both offer new possibilities to re-fuel demand for real estate.”

The Northern Ireland investment market saw an increase in transaction volumes over the previous year throughout 2017, with £316m invested over 43 separate transactions.

That compares to £248m invested across 36 deals in 2016.

This year sees the opening of several new hotels including the Maldron on Brunswick Street, the Grand Central on Bedford Street and the AC Marriott Hotel at City Quays.