With a total investment volume projected to surpass £320 million, the market remains robust, slightly down by 9% compared to last year, but significantly higher than the five-year average of £264 million.

Top Investment Deals: The year witnessed several significant transactions, with the retail sector dominating the top five investments. These include the £46.5 million sale of Rushmere Shopping Centre & Retail Park, Craigavon, and the £42 million acquisition of Forestside Shopping Centre, Belfast. Savills was involved in four out of the top five deals.

Quarterly Analysis: The first quarter began strongly with an investment volume of £129.63 million, a 30% increase from the previous year. However, Q2 saw a contraction due to rising interest rates, with a total volume of £27.4 million. The market bounced back in Q3 with a total investment of £122 million, but a contraction is anticipated in Q4 to £41.5 million.

Sector Analysis: Retail emerged as the most significant sector, accounting for a 63% market share and an investment volume of £203.2 million. The office sector represented 10% of the turnover, with a total volume of £32.6 million. The industrial sector, despite being the least performing, still contributed 9% of the deal volumes.

Investor Profile: Private local investors dominated the market in 2023, filling the gap left by institutional investors post-Brexit. These investors have been drawn by the attractive yields and view Northern Ireland as a strategic gateway between the EU and the UK.

Outlook for 2024: The upcoming year is expected to see an increase in investment stock due to the refinancing pressures on real estate loans. The focus will increasingly shift towards green buildings, reflecting the growing importance of ESG considerations in property investment.

Ben Turtle, Head of Savills Northern Ireland, commented: "The resilience of Northern Ireland’s investment market in 2023 is a clear indicator of its underlying strength and adaptability. Despite the challenges, we've seen sustained interest from local investors who recognise the unique opportunities our market offers, especially in the retail sector. Looking ahead, we anticipate a dynamic market in 2024, with a growing emphasis on sustainable and ESG-compliant properties."

Top Investment Sales 2023