Brexit took its toll on all property markets both in the UK and Northern Ireland, bought there has been encouraging signs recently that the property market in Northern Ireland is bouncing back.
Recent figures show that investment yields have stabilized and increased demand has had a positive impact on property prices, reducing the ratio of rents to capital value.
Prime retail yields are now in the region of 5.75%, office yields 6%, Twelve months ago, they were 6% and 6.25% respectively.
McKibbin Commercial has seen demand for property investments increase during the last 18 to 24 months.
The RICS Commercial Market Survey found that occupier and investor demand softened in the second quarter of this year. However, both remain positive.
UK property funds look to be investing in properties in Northern Ireland to try and achieve better yields than on mainland UK, with sizable investment made in the region over the past 24 months.
Q3 predictions are £220m of deals done in the commercial market in Northern Ireland.
In the past three months, McKibbin Commercial has completed a number of property transactions in both retail and office sectors, reflecting the prime yields quoted above. The continued recovery of the investment market has also been aided by the fact that debt finance still remains very cheap, with Bank of England base rates at 0.25%.
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