Business

Belfast is third fastest growing office market in the world

Grade A Belfast office development Merchant Square is due to be completed in late 2018 and will help address a shortage in the city
Gareth McKeown

BELFAST is the third fastest-growing office market in the world according to the latest commercial property report.

CBRE's research for the first half of the year shows Belfast has the third strongest prime office rent growth at 14.3 per cent year-on-year, in a list that also contains Bangkok, Amsterdam, Stockholm and New York.

Belfast's strong growth was driven by demand from the banking and financial and professional services sectors the report states, as well as the business services and technology, media and telecommunications industries.

In ‘The 10 Fastest-Growing Markets' list, Bangkok and Stockholm are the only two cities that are placed ahead of Belfast, with both recording year-on-year prime office rent growth of 18.2 per cent.

Leeds, which is tied in seventh place with Lyon at 11.1 per cent year-on-year, is the only other UK city to feature in the ‘The 10 Fastest-Growing Markets' list.

David Wright, director at CBRE said the results were to be expected.

“It is not surprising that Belfast has experienced significant rental growth, given the lack of speculative development and our decreasing reliance on the public sector, which kept rents artificially low. It should be stressed that when compared to Birmingham, Manchester, Glasgow, Edinburgh, London and Dublin, Belfast remains the most cost-effective."

“That being said, Belfast still has a real shortage of prime Grade A stock, and there is a great need to deliver more occupier-ready Grade A office accommodation, in order to attract and retain high-end companies seeking to invest in the city," he added.

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