Hotels driving boom times in Belfast, according to report

The second annual Belfast Crane Survey from Deloitte Real Estate, shows a total of 25 schemes under construction in the city centre - 22 of which are set for completion in 2018, compared to 19 schemes a year ago.

Amongst the projects are eight new hotels, seven office developments, four student accommodation projects, three residential developments, two new educational facilities and one retail/leisure scheme.

Ongoing development includes The Grand Central Hotel, a 300 room hotel with additional office space on Bedford Street, which is set to complete in June this year.

Just ahead of it, the AC Hotel by Marriot, a 188 room hotel adjacent to Donegall Quay is set to open in April.

“Belfast has been enjoying a surge in tourism in recent years and reflective of this, hotel developments continued to be central to Belfast’s story in 2017,” said Simon Bedford, partner in the Deloitte Real Estate practice.

“There are over 1,000 new hotel rooms currently being built and all are due to complete in 2018.

“The new hotel openings will create an exciting period for the city and substantial employment opportunities.”

Last year also saw work commence on 194,787sqft of new office space across five developments, bringing the total office space under construction to 453,385sqft.

Almost half (46.5%) of that is the significant refurbishment of existing office space. The report notes the redevelopment of The Weaving Works in Belfast’s Linen Quarter and the revamp of the historic Ormeau Baths into a co-working space.

These schemes are indicative of a trend which will see other heritage sites repurposed, including the former Belfast Telegraph building.

While no new student accommodation projects broke ground in 2017, work is ongoing on five major schemes that will provide more than 2,000 purpose built units for students of Queen’s University and Ulster University. Construction continues on 840,000 sq ft of new education space in the city.

The report reveals that residential development in the city centre grew at a slower pace than other sectors, with 180 new residential units currently under construction.

However, it suggests that, with new jobs being created in the city and schemes like the rapid transit project improving transport links, momentum in the residential market will continue to recover.

“The Deloitte Crane Survey 2018 shows that investors continue to see great opportunity in Belfast, which is evident by the number of cranes that continue to dominate the Belfast skyline,” said Belfast City Council CEO Suzanne Wylie.

“Tourism growth is driving new hotel building and there is still demand for Grade A office space from local and international companies.”

She said it was encouraging that the report indicated signs of growth in the city’s residential development, identified as a key future driver of the city’s economy.

“In The Belfast Agenda, the city has set out ambitious targets, including attracting thousands more people to live in the city and creating thousands of new jobs by 2035,” she said.

“With plans emerging for new accommodation and improvements to infrastructure, those goals remain achievable.”

Simon Bedford said the second survey captured the ongoing evolution and change in development patterns in the city.

“The proposed pipeline for traditional residential developments is promising, particularly if proposed schemes gain planning approval in 2018,” he said.

“With a growing student population in the city and inward investment in professional sectors continuing, it is anticipated that city living will increase in popularity among students and young people beginning their professional lives in Belfast.”