Commercial real estate market high | Belfast Newsletter

Merchant Square

Data shows investing activity in 2021 more than doubled year over year with almost £ 290million invested in 30 deals.

The biggest deal in 2021 was arguably the sale of Merchant Square in Belfast city center, which was sold to a Middle East investment fund for £ 87million in what is NI’s largest office investment deal ever.

Other notable investments include Balloo Retail Park in Bangor at Supermarket Income REIT for £ 24.8million and Shane Retail Park in Belfast, which was sold to DS Properties for £ 23million.

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CBRE research shows that offices and retail were the main areas of investment in 2021, accounting for around 43% and 40% of overall spending, respectively.

Industrial and Alternatives accounted for around 11% and 6% of the activity, respectively, but the two sectors are expected to increase their market share to help distribute volumes more evenly across all sectors in the years to come.

Institutional investors were responsible for buying most of the commercial real estate from NI during the year with over 38% stake, while local investors bought over 33%, PropCos (real estate companies ) more than 15% and REIT (real estate investment trusts) around 14%.

Gavin Elliott, Senior Director of CBRE NI, said there has been a flight to quality and assets with strong underlying value and professional demand: “NI has an attractive property yield advantage over GB and ROI and we expect to see The strong investor appetite for NI continues through 2022, largely due to our unique location as a gateway between the UK and the EU.

“Traditional core assets such as well-let blue-chip retail warehouses and office space will continue to attract suitable buyers, but we also expect to see investors targeting alternative sectors such as construction to let, healthcare. health and logistics or ‘beds, drugs and sheds’, which bodes well for NI.

Brian Lavery, Managing Director of CBRE NI, added, “The NI commercial real estate investment market has consistently performed well throughout the year as the economy continues to accelerate. We have seen a dramatic increase in investor appetite for properties across all sectors, primarily driven by the low interest rate environment and the continued improvement in homeowner markets and the economy in general. In addition, with inflationary pressures being felt throughout the UK economy, investor sentiment for real estate will continue to strengthen.

“It is clear that there is a growing appetite for NI commercial real estate from investors across the spectrum. With a multitude of reasons to invest – from an exceptional talent pool to a high standard of living – NI strongly attracts international companies looking for better returns and we expect this to continue in 2022. “

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