Up to £100m of investment is expected to arrive in Northern Ireland between now and the year end, according to the latest bi-monthly research report from CBRE.
The Brexit referendum result has changed the buyer profile from mostly UK institutions to more local high net worth individuals and UK property companies, said the report.
In total, £164m was invested in 23 transactions during the first nine months of 2016. Last year, more than £400m was invested in 43 transactions.
Along with shaken investor confidence after the EU referendum, more small lot sizes are on the market compared with 2015, says the advisory firm.
High-value investment deals this year include the sale of Damolly Retail Park for £30.75m and the sale of Tower Centre, Ballymena for more than £6m.
Brian Lavery, managing director, CBRE said: “We expect to see up to £100m of transactions in the remaining months with assets such as Curry’s Sprucefield guided at £14m, Laharna Retail Park in Larne guided at £5.78m and two office buildings at Clarendon Dock guided at £4.5m.”
Office lettings have been steady, with 310,000 sq ft of take-up recorded in Belfast in the first three quarters of 2016. Prime rents have now climbed to £18 per sq ft.
Lavery said: “The focus for the last two months of 2016 will be to get outstanding transactions completed by year-end. Brexit will continue to be a major topic for discussion in NI throughout 2017 along with the UK’s proposed plan to reduce corporation tax to 10%.”
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