New data suggests that the Northern Irish property market bounced back in 2014. This week Simon Morris asks; is this the time for UK property investment funds to invest in Northern Ireland’s commercial property market?
A Market on the Upswing
Featured in online publications such as Yahoo Finance, Simon Morris advises UK property investment funds how to accrue maximum returns for their property investment portfolios.
Simon understands how lucrative commercial property can be if you catch a particular market as it’s ascending. New data from agent Savills’ Northern Irish branch suggests that this region’s commercial property market is one on the upswing.
Property Transactions Ahead of Pre-Crisis Times
According to the Belfast Telegraph new figures released by Savills Northern Ireland suggest that the region reaped £500 million in property investment deals in 2014. This is nearly double the region’s total value of transactions for 2013. This sum doesn’t include bank loan sales to financial institutions.
Commenting on the progress of the Northern Irish commercial property market, Savills’ Northern Ireland director, Ben Turtle said that “putting all the loan sale activity to one side, the level of commercial property transactions is actually ahead of pre-crisis times.”
“Continued Rental Increases This Year.”
It’s also important to note that job growth in the Northern Irish private sector measured roughly 3.5% throughout the course of 2014. Savills director Neal Morrison went on to suggest that this rise had a positive impact on Northern Ireland’s office lettings market.
“This has resulted in a significant reduction in the availability of prime office space in Belfast and will result in continued rental increases this year.” Morrison also revealed that rents of roughly £183/square metre should be agreed to in 2015.
A Lucrative Opportunity for UK Property Investment Funds?
The fact that values are ahead of pre-crisis levels suggests that Northern Ireland’s commercial property market is one that bounced back in style in 2014. It could prove lucrative for UK commercial property investment funds throughout 2015.