The IPD review of commercial property market performance is to be welcomed in highlighting a number of salient indicators which serve to howcase the investment potential of Northern Ireland as a region and Belfast as a city over medium-long term investment horizons.
Uppermost amongst the key messages is that over the full IPD time-series (1984-2011) the commercial property market in Northern Ireland at the Allproperty level has achieved total return performance of 13% y/y. This comfortably surpasses the UK Allproperty total return average of 9.2% y/y over the same time-series.
Reassurance should also be drawn from the fact that in the last two years (2010-11) the performance of Northern Ireland commercial property has closely mirrored that of other UK regions – this in spite of the well-publicised problems within the Irish banking sector. Indeed, if performance over the 3yr and 5yr time-series to the end of December 2011 are compared there is clear evidence that the commercial market in Northern Ireland is moving in the right direction.
At the sectoral level, the performance of Belfast offices is noteworthy in that it offers positive messages as well as highlighting a number of pertinent issues. Total return performance in the Belfast office sector (3.4% y/y) exceeded the UK average (1.5% y/y) in 2011.
Source : IPD