'Shopping centres remained strong': Belfast property investors led Northern Ireland market activity with 81% of commercial deals in £308m year

Northern Ireland property investors were most active and responsible for 81% of commercial property deals during 2025, according to new figures released today (Tuesday) from Lambert Smith Hampton (LSH).

The Investment Transactions Northern Ireland (ITNI) report tracked a total of £308.2m in commercial property deals across the region during last year, which is 8% above the five-year average and more than double 2024’s total. A number of large deals, particularly in the retail sector, contributed to the stronger than expected volume.

Annual retail investment of £215.2m stands 48% above the five-year average, accounting for 70% of 2025 volume and the highest retail investment volume since 2017.

Shopping centres remained strong with Herbert Group’s £58.8m acquisition of Lesley Abbeycentre, Newtownabbey from NewRiver REIT, the largest deal of the year, and Muntermellan’s purchase of Erneside Shopping Centre, Enniskillen for £12.4m.

The retail park market also performed strongly with Sprucefield Retail Park, Lisburn sold for £52.2m to Realty Income and Riverside Retail Park Coleraine acquired by Magmel Ltd for £30m.

Industrial and warehousing also performed well in 2025 with volume of £44.1m, standing 36% above the five-year average. This was largely due to an off-market sale which transacted at the beginning of the year, as well as Manfreight’s purchase of a part-let industrial warehouse on Duncrue Street, Belfast for £9m.

Other core sectors have remained below trend throughout 2025. Offices continued to struggle lying 51% below the five-year average. However, at £27.5m it was a year-on-year improvement.

Homegrown propcos invested £126.4m during 2025, primarily in retail and the office sector. While 81% of deal activity was carried out by local private investors, this only accounted for 18% of the volume for the year. Propcos drove purchase volume with 41% of the total volume for the year.

Claire Shaw, senior research analyst at Lambert Smith Hampton said: “The Northern Ireland commercial property market experienced stronger than expected volume in 2025, largely driven by two £50m+ deals.

"Retail emerged again as the standout sector and while we expect this trend to continue, most of the dominant shopping centres in NI have traded in recent years, and we forecast that overall retail volume will reduce.

"However, investor interest in the retail warehouse sector remains strong, so transactional volume could increase if landlords decide to capitalise on strong levels of investor demand.”

Jonathan Martin, director, Lambert Smith Hampton, added: “It’s great to see local private investors leading deal activity throughout the year, and our homegrown propcos claiming and investing in assets that are right on their doorstep.

"As we look ahead, 2026 is unlikely to be a record year, however this is due to supply of assets, rather than investor appetite or caution. Despite the challenges of the macroeconomic environment, we still see investors primarily focused on the fundamentals of individual assets.

“We anticipate that the office market in particular could continue to face challenges. Demand in other UK cities has been improving, but with a lack of Grade A prime developments launched in recent years, NI cities may not have the stock to meet that demand.

"We expect the industrial sector demand to be steady, with well-located industrial assets continuing to pique investor interest, however this is also a sector that is constrained by supply.”