Tag Archives: guides
Private equity investment boosts commercial property market in Northern Ireland
The value of commercial property investment in Northern Ireland reached pre-economic crisis levels in 2014, according to a new report from Savills Northern Ireland. The emergence of private equity in the market resulted in approximately £500 million worth of commercial property deals completed by the end of the year, a 186% increase on 2013. Retail investment was to the fore accounting for 88% or £440.27 million of all deals and according to Savills, resilient jobs growth and positive momentum in occupational markets, particularly in the retail sector, has resulted in attractive returns for investors. Ben Turtle, a director of Savills Northern Ireland, expects this trend to continue in 2015. ‘One of the key drivers of investment activity has been rental growth and we expect both retail and office rents to increase this year,’ he said. ‘As a result, we see strong investor demand continuing into 2015 with £300 million of assets already scheduled for sale. This time last year that figure was £200 million,’ he added. Key investment deals which took place in 2014 included; The Obel, Donegall Quay, Belfast, Shane Retail Park, Belfast and Cityside Retail Park, Belfast. Savills NI transacted 78% of all investment deals in 2014. In the Belfast office market, Savills report that lettings in 2014 reached 348,500 square feet and were driven by improvements in the labour market, with private sector employment increasing by nearly 3.5% in the year to the third quarter of 2014. ‘This has resulted in a significant reduction in the availability of prime office space in Belfast and will result in continued rental increases this year. We estimate that approximately 500,000 square feet is currently required to meet occupational demand and it is expected that rents in the region of £183 per square meter will be agreed for deals in 2015,’ said Neal Morrison, a director of Savills Northern Ireland. The report also says that a strong economic backdrop has led to resurgence in retail activity with a number of new entrants coming into the market, according to Savills. Fashion and footwear and food and catering dominated take up of retail space in 2014, accounting for 61% of all deals in the year. ‘Renewed consumer confidence is now beginning to be reflected in the retail property market. While rents remain below peak levels and the supply of space exceeds demand, new entrants have started taking space in prime and secondary locations. With new arrivals across a variety of sectors, the broad based nature of the recovery is encouraging,’ explained Paul Wilson, a director of Savills Northern Ireland. Looking ahead, Savills say the rating revaluation in April 2015 could have a significant impact with a reduction in rates expected. For example, Donegall Place could experience a reduction of between 40% and 50%. Savills expect that the revaluation will put Belfast on a competitive footing with other UK regions. Limited supply of new housing development, in addition to strong demand, are expected to drive… Continue reading
NAEA issues advice for selling a property in the cold, dark winter months
Selling a home in the UK in winter can be difficult but ensuring the garden looks it best even in these darker months can help, according to estate agents. For the best chance to sell your home it is important to make sure the property stands out and taking steps to make sure it looks welcoming, says the guide from the National Association of Estate Agents (NAEA). ‘Winter can be cold, dark and wet, which often means properties are unable to promote some of their best features. By incorporating a few simple tips, sellers can enhance their property’s look and feel and increase their chance of attracting an offer,’ said NAEA president Simon Gerrard. ‘Quite often, it is the smallest changes to a property that can make it stand out over others. A warm, inviting atmosphere in the dreary winter months is key. Simple things such as making sure a home is warm and well lit can improve saleability during the darker months and additions such as welcoming garden lights to enhance the entrance to your home can appeal to buyers’ imaginations,’ he explained. The NAEA said sellers need to realise that first impressions still count and 0utside is where the biggest impact of the bad weather will be and this is obviously the first sight a prospective buyer will have. Winter can make the front garden and paths look dull and dirty, so ensuring these are clean and clear of leaves will improve the attractiveness of the property. Home owners are advised to check the gutters and drain covers are properly cleared of dead leaves and other debris as leaky gutters and down pipes cause damage and are unsightly. Also, a messy garden can signal the need for too much work and thus detract buyers. If possible, vendors should clear patio furniture away, if not at least ensure they are securely covered. Fix or secure any loose fence panels or gates. It is also advisable to cut back overhanging branches as this will help brighten the property. People are urged to ensure the property is well lit. This means making sure all lights work, including the security lights. If a viewing takes place during the day, open all of the curtains and blinds to ensure as much natural light as possible can enter the home. Making sure the doorways, entrance, stairs or porch are clear of clutter can help create an inviting home. The NAEA also says it is important to make your house feel warm and homely. If a buyer enters a property that is cold they’re unlikely to stay long. Smell is also important. You are going to get a bad reaction from buyers if there is an odd aroma or damp smell hanging around. So freshen up, let some fresh air circulate and the old cliché of fresh bread or roasting coffee really does work. If you are going away for any period over the winter the heating should… Continue reading
New UK stamp duty rates subdue sentiment in high value home markets
Prime London house prices rose by an average of 2.6% in 2014, but for the first time since the credit crunch the UK’s prime regional markets marginally outperformed the capital with growth averaging 3.2%. According to the latest analysis from Savills 2014 was a year of two halves for the prime London residential market. Prices rose by 4.9% on average in the first half of the year and fell by a net figure of 2.2% in the second half, its prime London index shows. The firm says that the increased rates of stamp duty introduced by the Chancellor in his Autumn Statement resulted in an adjustment in values at the top end of the market, most notably in prime London and parts of its high value extended commuter belt. As a result, the average all prime London index where values average £2.6 million recorded a 2.6% fall in the final quarter of 2014. However, London’s prime markets up to £1 million and in the £1 million to £2 million range were less adversely affected by the stamp duty changes and would also be less affected by opposition proposals for a mansion tax. As a result, they saw annual price growth of 6% and 2.5% respectively. The greatest impact of the stamp duty increase was seen in the most valuable markets of prime central London, which have seen the strongest price growth in recent years. In these central markets, where prices average £4 million, values fell by 4.2% in the last quarter of the year, contributing to small falls of 1.3% year on year. ‘It will take time for the effect of the stamp duty changes on prices to become clear, early signs are that the additional cost is predominantly being borne by sellers through price adjustments at a level similar to the extra stamp duty,’ said Lucian Cook, Savills UK head of residential research. ‘Prices were easing before the Autumn Statement, so for the very top end of the market the stamp duty rise coincided with some of the froth coming off pricing earlier in the quarter. Our analysis suggests that even without the stamp duty changes, values were on track to soften by around 1% in this last quarter, in part due to general pre-election uncertainty around high value property taxation,’ he explained. Early indications are that the prime markets outside London have been less impacted by the new stamp duty rates and would also be less affected by further taxation in the form of a mansion tax. In the sub £1 million prime market across the UK, average prices rose by 4.6% in 2014, fuelled by particularly strong growth in the first six months of the year. These lower value prime markets, particularly those that are well-connected to London, are forecast to see the strongest growth over the next year and… Continue reading
