Investment in the north’s commercial property market plunged by 65% last year, new analysis from CBRE indicates.
The Belfast-based property consultancy tracked £118 million in spending across 24 transactions during 2024.
That was £220m down on the previous year.
The volume of new assets coming onto the market also plummeted by 64% last year, falling by £217m year-on-year to £123m.
“The investment market in Northern Ireland experienced a significant downturn in 2024 when compared to the previous year,” said Gavin Elliott, senior director at CBRE NI.
“This subdued activity can be attributed to several significant external factors, including persistently high borrowing costs and political uncertainty surrounding government elections in both the UK and the US, as well as the implications of the UK budget announced last October.
“With fluctuating asset values and a lack of pricing benchmarks, investors have shown reluctance to list properties for sale,” he added.
The biggest deal of last year saw Bloomfield Shopping and Retail Park in Bangor sell for £22.7m.
CBRE said retail accounted for 56% of overall spending on commercial property in 2024.
Other notable deals last year saw the Etap Hotel on Dublin Road sell for £7.5m to Andras House, while Dublin-based Elkstone stepped in to acquire Murray’s Exchange for an undisclosed sum.
The investment group subsequently launched a bid to develop student accommodation on the site next to Sandy Row and the new Belfast Grand Central Station.
Randox also sold Central Park in Mallusk last year for an undisclosed sum.
It came just two years after the Antrim life sciences giant paid £17m for the 830,000 sq ft logistics and industrial complex.
Meanwhile, a number of prominent properties have already been listed on the commercial market in the opening days of 2025.
They include the former Newcastle railway station, which has been occupied by Lidl in the Co Down seaside town since 2001.
The retailer’s lease on the property is due to expire on November 1 2025. Lidl is planning to relocate to a new build supermarket in Newcastle later this year.
A property on the corner of Queen Street and Castle Street in Belfast has also come on the market with a price tag of £1.35m.
It comes just weeks after McAleer & Rushe secured planning approval for an £80m student accommodation development across the street.
The ground floor of the property is currently leased to Poundstretcher, while the upper floors are vacant.
“While 2024 has presented its challenges, there are indications of a more resilient market in 2025,” said Mr Elliott.
“We anticipate stronger investor sentiment, with a gradual improvement throughout the year.
“However, investors are likely to remain sensitive to pricing and sector dynamics due to ongoing economic and geopolitical uncertainties.
“With analysts predicting further reductions in the base rate, this is likely to create more favourable conditions for commercial real estate investment in 2025.”
