The property market in Northern Ireland is being badly affected by the continued weak economy and uncertain economic outlook, according to research by property adviser CB Richard Ellis. However, despite fears of further government austerity measures, rising unemployment and low consumer confidence, the retail sector is proving resilient and retailers are continuing to expand in the region, CBRE said.
The property market in Northern Ireland is being badly affected by the continued weak economy and uncertain economic outlook, according to research by property adviser CB Richard Ellis. However, despite fears of further government austerity measures, rising unemployment and low consumer confidence, the retail sector is proving resilient and retailers are continuing to expand in the region, CBRE said.
'However, there are signs that rental values are stabilising at current levels, having experienced a less pronounced decline from peak than many other jurisdictions and many corporate occupiers are encouraged to negotiate transactions in the current climate considering the relative value on offer,' said Brian Lavery, Managing Director of CBRE in Belfast. Yields for prime investment properties also appear to be stabilising and while demand for secondary assets remains weak, there have been some recent investment sales concluded in Northern Ireland which demonstrate the prevailing demand for prime investment opportunities in the region, Lavery noted.
Prime office rents in Belfast are now approximately £134.50 (EUR 155.00) per m2, while older buildings are generating approximately £97 per m2. Prime Zone A retail rents in Belfast are now around £2,000 per m2, after declining by as much as 32% from their peak. Prime office yields in Belfast are now approaching 6% while prime retail yields are around 5.25%, CBRE said.
