27 JUL 2017
Political uncertainty appears to be impacting on sentiment in Northern Ireland’s commercial property market, according to the latest RICS (Royal Institution of Chartered Surveyors) and Ulster Bank Commercial Market Survey.
Occupier and investor demand both softened in the second quarter of the year, according to feedback received from Northern Ireland commercial property professionals. Expectations for both rents and capital values were also trimmed, the survey findings show.
This follows the UK trend, where rental expectations have been scaled back and capital value expectations have moderated.
Political uncertainty – including the ongoing Brexit negotiations and the recent UK general election – is seen by surveyors as an impediment to market activity.
The UK’s decision to leave the EU continues to impact on investment decisions in Northern Ireland in particular. The survey suggests that demand from foreign investors for Northern Ireland commercial property assets has fallen for the fifth quarter in succession.
Northern Ireland surveyors are also more likely than respondents in other parts of the UK to say that they have seen evidence of businesses looking to relocate away from the UK as a result of Brexit. Northern Ireland, Scotland and London continue to return more than 50% of respondents expressing this view.