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Belfast © iStock
Belfast © iStock

14 May 2019 | Herpreet Kaur Grewal

Commercial property in Northern Ireland posted a total return of 1.7 per cent in 2018 – down from 8 per cent the year before, according to a study into the region published this month.


The Northern Ireland Commercial Property Investment Review, prepared by Morgan Stanley Capital International (MSCI) in conjunction with Ulster University, states that the NI commercial property performance followed the larger UK market “which continued its volatility in 2018 as the uncertainty surrounding Brexit weighs on investment performance”.

Among the UK’s other country markets, Scotland produced a total return of 3.6 per cent, Wales 0.2 per cent and England (excluding London) 4 per cent.

The London commercial property market outperformed the rest of England by recording a total return of 7 per cent in 2018 off the back of a 3.4 per cent capital growth. 

But the report points out that the income return of 7 per cent for NI exceeded that recorded for other UK nations in 2018, outperforming Scotland (5.5 per cent) and Wales (5.8 per cent) and England excluding London (5 per cent). London's income return remained "characteristically low at 3.5 per cent". 

The MSCI real estate commercial property sample for NI is composed of 73 properties with a total capital value of £723.8 million as at the end of December 2018.