According to recent research carried out by commercial property and real estate agency CBRE, the future growth of Northern Ireland’s commercial property market is highly dependent on a stable Stormont Executive, and an end to the on-going political uncertainty in the region.  While the region’s market has displayed remarkable resilience in the face on present issues, the political situation is having an undoubtedly negative impact, CBRE assert.

CBRE’s Managing Director, Mr Brian Lavery, states, “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.

“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.”

Mr Lavery seems by all accounts certain that this period of political strife is beginning to have damaging consequences, as you can likely ascertain for yourself from the above. Brexit is of course a factor as well, given how the Northern Irish commercial investment market has been largely dependent on Great Britain and international investment spend, according to the most recent investment analysis in Northern Ireland. The two markets make up 87% of the £1.64 billion spend over the last five years from 2013 to 2017.

Despite some clear concerns however, CBRE Director Mr Gavin Elliott believes that Brexit must be viewed not as a problem, but as an opportunity.

Mr Elliott insists, “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 Great Britain and further afield.

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

Northern Ireland’s investment market has in fact seen an increase as compared to the previous year, which would seem to back up Mr Elliott’s assertions. Throughout 2017 £316 million was invested across 43 separate transactions, compared to £248 million invested across 36 transactions in 2016.

Overall, CBRE expects that yields across all sectors within real estate in Northern Ireland will remain relatively stable over the next 12 months.

Sam Bonson

Sam is an aspiring novelist with a passion for fantasy and crime thrillers. He is currently working as a content writer, journalist & editor as he continues to expand his horizons.
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