The commercial property sector in Northern Ireland is struggling compared to the Republic, according to new worrying figures from CBRE.
In a new report, it has emerged that only 3,000 sq m of office space was taken up in Belfast in the first three months of the year, compared to 40,000 sq m in Dublin. Furthermore, there was actually not a transaction deal worth more than £1 million in Belfast in the first quarter.
The Belfast telegraph reports that analysts have suggested that the market has been severely depressed due to prime minister David Cameron announcing that a decision on corporation tax would not be made until the referendum on Scottish independence takes place.
When it comes to supply, it is not actually meeting the demand for investment in both Ireland and Northern Ireland, sparking a call on the government to invest more within the construction and development industries. Many experts believe that it is this lack of supply which is actually behind the figures.
Brian Lavery, managing director at CBRE in Belfast, said to the Belfast Telegraph: "The last few months has seen muted activity in most sectors of the Northern Ireland commercial property market although demand is strongest for prime properties in Belfast.
“Although the Northern Ireland property market remains quite depressed, relative to the Republic, there is international demand for prime investment properties but there are very few assets actually being offered for sale, which is frustrating would-be purchasers."
Certain developments in Belfast’s pipeline are sure to boost figures later this year. The Soloist office block on Lanyon Place is one such project that will not only add 4,000 sq m to the office space available in the city, but new tenants are set to include Pinsent Masons and Belfast IT company Aepona.