Busy autumn in prospect for the Northern Irish commercial property market
CONTACT: Brian Lavery – 028 9043 8555 e-mail:firstname.lastname@example.org
Please see link further below to download a full copy of the report
Belfast, 1st September 2013 – Commercial property consultants CBRE today released their latest Bi-Monthly report, focussing on trends in all sectors of the Northern Irish commercial property market and also commenting on the different sectors within the Republic of Ireland. Following a very quiet first two quarters, the last two months have seen significant increase in activity mainly across the investment sector.
According to Brian Lavery, Managing Director, CBRE Belfast “Following the previous strong demand for institutional type investments, that we anticipated in our last report, this has now come to fruition with most properties coming to the market seeing competitive bidding with intense interest from UK institutions and also local investors”.
NORTHERN IRELAND MARKET
- There has been a marked improvement in transactional activity in the investment sector over recent months and some depth to the market with considerable money chasing prime investment opportunities and a welcome resumption of bank funding for prime assets
- Yields in many sectors have contracted over recent months in reaction to strong demand in the region, with UK institutions and local buyers both active. There is particular strong demand for well let office properties, out of town retail and supermarkets
- Following considerable stagnation, the process of deleveraging appears to have kicked off in earnest over recent months with a notable increase in the volume of investment product being released for sale across Northern Ireland. Whilst NAMA and the banks are beginning to release properties for sale, a number are also coming to the market through consensual borrowers. Demand for investment properties is being driven by pricing that is below replacement cost in many cases and the comparative gap between property yields and interest rates which are now anticipated to remain at a low level for several years
- There is less good news in the occupier markets with retail take-up and office lettings still below what would indicate a strong recovery in the economy
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