BELFAST'S office market enjoyed the UK's greatest rise in rents as the take up of space took a major upturn in the second half of 2014, according to a new report. Commercial property firm CBRE said it reflected a "significant rebound" in take up across western Europe.
Rents rose 11.11 per cent over the year in Belfast, the strongest growth ahead of Birmingham (5.7 per cent) and Liverpool (5.6 per cent).
Dublin meanwhile was one of the more positive office locations with demand in the fourth quarter reaching one million sq ft and office take up on the rise.
David Wright, director of CBRE Belfast said: "There is no doubt that the tail end of 2014 saw the most positive activity in the Belfast office market. In fact, based on CBRE's report, 71 per cent of take up of office space for the whole year in Belfast was completed in the last six months."
He said the report "highlights that demand remains strong in Europe as it is in Belfast". "However, unlike Belfast, most European cities are capable of fulfilling demand. Lack of grade A space has been a hot topic in Northern Ireland for the past year and it remains a very real issue, particularly as the only new build office being completed in 2015 is City Quays 1. "The Dublin office market is thriving, there is no doubt about that. What we are seeing is as the result of increased FDI activity. "Corporation tax is making the headlines in Northern Ireland currently and with good reason - a change to take it in line with Dublin will make it a positive driver for the office market. We only have to look at how well Dublin has performed in this sector over the last number of years to recognise this." "In addition to the need for new office builds such as City Quays 1, refurbishment of buildings will also be important in delivering supply.
We have already started to see this happening with buildings around the city centre with the owners of the Ireland Brothers building in Adelaide Street and Arnott House on High Street in the process of carrying out refurbishment programmes this year."