Real estate investment in north ‘on course to double in 2021’ – CBRE
COMMERCIAL real estate agency CBRE expects real estate investments in Northern Ireland to improve significantly this year compared to the same period in 2020 – as over £ 147 million in transactions were closed in the first six months of 2021.
Investing in Northern Ireland in 2020 has been limited due to the obvious challenges posed by Covid-19. The total annual investment was £ 136 million – a 36 percent decrease from 2019 – reflecting these challenges.
However, recent research by CBRE NI on the volume and value of investment transactions in the first half of 2021 shows that capital expenditures totaled £ 147 million in the first half of the year alone.
Gavin Elliott, Senior Director (Capital Markets) at CBRE NI, said: “As we have secured more than the total investment in 2020 in H1 alone, we expect the transaction volume to double by the end of 2021.
“On the whole, real estate is not immune to broader economic and market forces, but as an asset class it continues to offer relatively stable income and capital growth, which is currently attractive for investors, especially given the current low interest rate environment. ”
The most significant deal to date in 2021 was undoubtedly the most recent sale of Merchant Square in Belfast city center by Oakland FRO for $ 87 million.
Other notable investments in the first half of 2021 include Balloo Retail Park in Bangor to Supermarket Income REIT for £ 24.8m, Lisnagelvin Retail Park in Derry for £ 9.7m and Kilroot Business Park in Carrickfergus to Wallop Estates for £ 9.35m.
“It is very positive to note the continued arrival of established and international investors in Northern Ireland,” added Elliott.
“In particular, the Supermarket Income REIT, which made its first Northern Ireland acquisition in Bangor, and the Merchant Square sale are helping to show that Northern Ireland is still an attractive place to invest.
“This investor confidence in the local real estate sector is fantastic news and we expect similar, if not higher, transaction volumes in the second half of 2021.
“The industrial and logistics sector has developed well so far throughout 2021 and we expect a strong second half of the year.
“The growing need for last mile delivery hubs, manufacturing space and warehousing will contribute to the expected recovery in overall investment levels this year.”