According to commercial property agent CBRE NI, investment in Northern Ireland endured a “challenging” 2024.
There was a 65% fall in the amount spent to £118m across 24 deals – a contrast to the £338m invested in 2023.
However, retail enjoyed its third year in a row as the dominant investment sector, accounting for 56% of total spend. And again, private investors from home were the dominant buyers.
The industrial sector was the second-most popular, accounting for 17% of spend, while the ‘alternative’ sector amounted to 14%.
Other big deals over the year included the Etap Hotel on Dublin Road, sold for £7.35m, while Central Park in Mallusk and Murray’s Exchange in Belfast changed hands for undisclosed prices.
Murray’s Exchange is the site of the old Murray’s Tobacco Factory, due to be turned into 870-room student accommodation by Irish developer Elkstone.
Mr Herbert and his wife Lesley acquired Bloomfield Shopping Centre in Bangor during 2024, hot on the heels of their acquisition of south Belfast’s Forestside Shopping Centre the year before.
Gavin Elliott, senior director at CBRE NI, said: “The investment market in Northern Ireland experienced a significant downturn in 2024 when compared to the previous year.
“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.”
Gavin Elliott, senior director, CBRE NI
And he said it was “particularly striking” that just £123m in investments were introduced to the market during the year – nearly one-third of the £340m marketed during 2023.
He added: “With fluctuating asset values and a lack of pricing benchmarks, investors have shown reluctance to list properties for sale.”
Domestic investors accounted for over 70% of commercial property acquisitions, while institutional investors and pension funds accounted for over 18%.
Mr Elliott added: “While 2024 has presented its challenges, there are indications of a more resilient market in 2025.
“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.”