A POST General Election recovery is expected to drive commercial property transactions past the £300 million mark this year according to a new report.
Commerical property agents Lisney believe the market had sustained a "pausing effect" due to the UK General Election and have made a bold prediction for growth in the remainder of 2017.
In its report on the second quarter Lisney found that transaction volumes are expected to increase significantly with the £125 million purchase of CastleCourt Shopping Centre by Wirefox completing in the third quarter, a major contributory factor.
Investment volumes during the second quarter of 2017 reached £18m, with more than £200 million currently under offer or in legals and £69 million currently on the market.
The report also found that office take up from April to June improved on the first quarter, reaching 43,000 sq ft, but added that unsatisfied demand is now between 400,000 and 500,000 sq ft.
In the retail sector, Lisney said the second quarter was marked by more activity in the regions with significant new lettings in Enniskillen, Coleraine, Bangor, Ballymena, Newry and Derry.
Overall the property experts believe 2017 will provide greater investment volumes than the £215 million last year, but added that demand could be dampened as consumer spending shows signs of slowing down.
Managing director of Lisney Northern Ireland, Declan Flynn said they were seeing "continued demand", particularly for investment stock.
“Subdued investment volumes over the first half of the year were as anticipated in the context of the General Election while its pausing effect was amplified due to the wider macro political climate."
“There are positive signs ahead for the local office market in the third quarter and beyond, attributable to unsatisfied demand, continued inward investment and new market entrants, particularly within the creative industries sector.
“Given the levels of demand, there is now a greater emphasis on delivering refurbishment projects swiftly and pushing speculative new build schemes through planning without undue delay," he said.
Looking to the future and Lisney expects a "major announcement" over the coming months on a new occupant for the former BHS store on Castle Lane in Belfast city centre.
