NI Commercial Property investment on the up in quarter one?

Commercial property investment volume in Q1  sits at a healthy ￡42.5m, double that of the same period in 2018 but still lagging 47% below the five year average. Whilst investment volume has been consistent across the last 4 quarters only five transactions were recorded in Q1 2019, the lowest since 2014. However Q2 is expected to peak with 21 deals completed or agreed amounting approximately ￡75m.

The ￡16m sale of James House and other mixed asset classes drove the volume of sale this quarter, but notably their has been an absence of retail transactions which seen a flurry of activity in late 2018.

Local investors were in the majority of activity in Q1, with current occupiers purchasing properties including a local government body and the Henderson group.

Why the reluctance to invest? 

Lambert Smith Hampton have stated that the local and national political situation continues to impede the NI Investment market. The continued uncertainty around a crash out Brexit is making investors hesitant to take an adverse risks. The ten quarters pre-referendum showed a quarterly average of ￡101m whilst post referendum at ￡63 average.  As uncertainty still looms buyers and sellers have delayed decisions to see any impact post exit.

 This “hold out and see” attitude has created a lack of supply to the market despite good quality assets being in high demand. Properties with solid fundamentals remain attractive to potential investors and it could be viewed that now is a good time to consider a favourable sale or investment.

How can we help?

At PGR we work with a select portfolio of investors who specifically look at off market opportunities. If you are considering a quick sale in a demanding market please get in touch.

Call us now for a  free initial consultation to explore just how we can help you find attractive investment for your off market sales.

Paul Rea

Contact us today;

PGR Advisory tel. 02890 788 880   mob. 07548 661 666    web. www.pgradvisory.com