2008 is now widely predicted to be a year of two halves as banks, economists and analysts view the UK economy.
The closing months of 2007 saw increasing concern at the implication of the 'credit crunch' as many financial institutions attempted to turn assets into cash and concern was experienced about growth in the economy.
Within Northern Ireland the paradox of a fresh new Assembly with real devolved powers sat uncomfortably with a stagnant housing market and increasing food and energy costs, and turbulence in the stock market.
So what effects have the incidents of the past few months had on the Northern Ireland property and what will 2008 herald for developers, investors and business space users?
At O'Connor Kennedy Turtle, the agency team report 'business as usual' in respect of occupational demand for commercial property. Demand for industrial/commercial space currently outstrips supply with a scarcity of good warehousing/industrial space in Greater Belfast and most provincial towns; and clear patterns of demand for smart freehold space in sites such as Kilbegs in Antrim, have provided space for service industries on pivotal motorway connections.
In the office sector there has been strong uptake for City Centre schemes and again the own door office market, both in the Belfast City Centre and in decentralised suburban locations such as Castlereagh Road and other regional centres such as Londonderry, remain buoyant.
Growth in this sector has led to a swing back from residential to commercial usage for both City Centre and suburban sites, being a major contribution to urban renewal.
The retail market in Northern Ireland, like the rest of the UK, remains tough, as new floorspace additions over the past few years result in increased competition.
Additionally, trading units by the major foodstore traders such as Tesco and Sainsburys underscore the importance of Northern Ireland to these large multiples and the addition of IKEA at Holywood Exchange, demonstrate that Northern Ireland ranks as a serious destination for flagship retailers.
The investment market continues to be strong with yields for offices, retail and industrial space in the province being relatively unaffected by the general UK market which currently now offers higher yields.
A recent acquisition by O'Connor Kennedy Turtle on behalf of a private investor (in Glasgow) saw a 7% yield being obtained on a substantial well let retail and office building with price tags in excess of £12M.
O'Connor Kennedy Turtle considers the investment market in the UK to be good value at present and perceive that capital values will enhance as the year progresses due to decreasing interest rates and increasing availability of funding from banks.
Brian Turtle, Partner at O'Connor Kennedy Turtle's Belfast Office, sums up by highlighting strong occupational demand in all sectors and a short term window of opportunity in the investment and development sectors before substantial capital growth occurs later in the year.
