Political upheaval is not slowing down the commercial property sector in the North with an estimated £220 million of deals currently in play and expected to close within the next six weeks, a new report from CBRE suggests.
The property consultants Northern Ireland quarterly market update for the second quarter also highlights that around £18 million was invested in seven transactions during the most recent period and that a significant number of major deals, including the estimated £125 million sale of CastleCourt shopping centre, continued to progress towards completion.
Gavin Elliott, director, CBRE said: “Despite potential uncertainty resulting from local and national politics, market activity continues to be robust, albeit the speed of completing transactions slowed running up to the UK general election.
“The local property market should also be well placed for further future investment as a result of the additional £1 billon funding recently announced for Northern Ireland.”
CBRE believes the office market in the North remains “resilient” with nearly 147,500 square foot leased during quarter two across nine transactions - this has been mainly driven by indigenous companies moving in to larger facilities or by foreign direct investors.
The latest report from the property consultants also shows that the local retail sector is showing positive growth for the first time in several years - retail vacancy levels have fallen in larger cities in the North and surrounding areas. But one area where there is an issue according to CBRE is a lack of development sites across Northern Ireland.
Meanwhile there is also no slow down in the number of new hotels currently under construction in the North- according to CBRE there is work underway at seven hotels in just Belfast alone.
Mr Elliott said: “We believe that Q3 will deliver a high level of investment given the closure of a number of shopping and retail schemes due to complete in the coming weeks. Whilst the Tory/DUP deal should be positive for the property sector, it is imperative that we have a stable local government in place, to deliver confidence to a global investment market.”
