County Antrim is 14 per cent pricier than the UK average for commercial property prices, according to a recent analysis.
Bionic, the business comparison firm behind the research, said Antrim is the most expensive to buy commercial property out of all counties in the north, despite being relatively cheaper place to rent a commercial property.
It said the average cost to purchase a commercial property in Co Antrim sits at £638,506 which is more than double the average (£315,433) in the north and 14 per cent higher than the UK average (£560,913).
Prices were collected per property, and monthly mortgage repayment estimates were based on 75 per cent interest-only loans, aligned with the new five per cent interest rates, and spread over 15-year repayment periods.
Other findings in the research showed that, based on the latest interest rates from the Bank of England, the average mortgage repayment on a commercial space in Antrim would cost £1,995 per month. This is inflated by the high expense of office spaces in Belfast it said.
Bionic added that just 12 months ago when the interest rate sat at around 2.5 per cent, this monthly repayment would have been £998.
By comparison, the average rental price in Co Antrim was £1,395 per calendar month; cheaper than in Fermanagh (£3,360) or Derry (£1,470), and is five per cent cheaper than the NI average (£1,467).
Read more:
- Co Down construction group Graham hits £1 billion revenue mark
- Canadian fast food chain Mary Brown's Chicken 'to open in several Northern Ireland locations'
- M7 announce new tenants for Belfast office development
- Forestside and Foyleside shopping centres put up for sale
Les Roberts, Business Comparison expert at Bionic, said: “It’s clear to see from this data that commercial mortgage rates are continuing to rise. Even so, being tied to a lease is especially risky during economically volatile conditions as many leases increase in line with inflation, which currently sits at around 8.7 per cent.
"Not only does buying give you full control over the property, but it means costs can be fixed, removing the risk of payments increasing. It's worth noting that this data looks at mortgage repayments based on the average 15-year repayment periods, but smaller businesses could settle for longer repayment periods to lower monthly costs.”
When broken down into business sector, the research showed office space to be the most expensive property to purchase in County Antrim at a cost of £3,395 PCM compared with an average rental cost of £1,537 PCM.
The average retail mortgage repayment was the lowest at £567 PCM compared to £1,290 to rent.
Meanwhile, rental prices for hospitality spaces sat at an average of £1,289 PCM and mortgage repayments PCM cost, on average £1,855.
