Northern Ireland records investment volumes of £338m, CBRE finds

Northern Ireland’s commercial investment sector held steady in 2023 despite economic challenges, recording total investment volumes of £338m, CBRE NI has revealed. 

Investment sales were accumulated across 31 transactions, exceeding 2022’s tally of £330m and marking the investment sector’s strongest performance since 2015.

The standout transactions of the year included the sale of Rushmere Shopping Centre Retail Park in Craigavon for £46.5m; Forestside Shopping Centre in Belfast for £42m; Abbey Retail Park in Newtownabbey for £40.6m; and Foyleside Shopping Centre in Derry/Londonderry for £27m.

Gavin Elliott, senior director at CBRE NI, said: “2023 has been a positive year with reference to investment sale volumes, and we expect 2024 will see improved real estate performance supported by declining UK inflation rates and a stabilisation in long-term interest rates.

“Yields and capital values have already begun to stabilise in some sectors, and occupier markets are still driving rental growth particularly in the residential, student and industrial sectors.”

Domestic investors played a pivotal role, comprising 74% of the market share, while institutional investors and property companies acquired 24% and 2%, respectively.

Retail emerged as the dominant investment sector, representing 67% of the total spend, with the office sector following at 18%.

However, the alternative sector saw a notable decline, constituting only 7% of the overall investment spend in 2023 compared with 22% in the previous year. That said, CBRE NI expects the alternative sectors to experience a strong rebound in 2024.

Throughout 2023, demand for quality, well-let assets with strong ESG credentials remained high. As a result, CBRE NI expects occupiers and landlords alike will be focusing on how they report, monitor, and improve their ESG credentials moving forward into 2024 and beyond.