Reasons to invest
- The people
- ICT infrastructure
- Our Connectivity
- Quality of life
- The economy
- Dual market access
- Belfast Region City Deal
- Office sector
- Industrial and logistics sector
- Retail sector
- Multifamily sector
- Low carbon
The people
There is a highly-educated population with over 40 per cent of residents educated to NVQ level 4 or above. Belfast benefits from two world-class universities with Ulster University’s new campus, due to open towards the end of 2021, bringing 15,000 students and staff into the city centre. 26 per cent of the population is aged between 16 and 34 years old which is one of the youngest populations in Europe.
ICT infrastructure
Northern Ireland is one of the best connected regions in Europe. It has the highest availability of fibre broadband in the UK at 95 per cent projected to increase to 99 per cent in the near future. Project Kelvin, the transatlantic fibre optic network which links Europe to the US, has its first connecting hub in Europe on Northern Ireland’s north coast. This allows Northern Ireland based servers to send data to the US quicker than any other part of Europe.
Connectivity
Northern Ireland is a compact region with strong connectivity. It benefits from two airports connecting with GB, Europe and further afield. London is one hour by plane, Dublin one hour 30 minutes by car and Scotland two hours 30 minutes by ferry. In addition the region has a well-connected motorway network and the majority of large cities and towns in the wider area can be accessed within 15 to 45 minutes’ drive. There is extensive investment in the transport infrastructure such as the new Belfast Rapid Transit System and the new transport hub in Belfast city centre, due to open in 2025, will further improve connectivity.
Quality of life
Belfast has a lot to offer. Excellent education, healthcare, affordable housing, quality public facilities and amenities provide the city and its residents with a very high quality of life. Glassdoor named Belfast as one of the top cities in the UK in which to work and live.
The economy
Belfast has a high GDP per capita of £44,300. GDP growth for 2021 is estimated at 4.9 per cent which is ahead of the UK average. The region is also creating jobs at a faster rate than the UK, led by the tech sector with 44 per cent of jobs created, compared to a UK average of 12 per cent.
Dual market access
The region is unique in having dual market access within the UK and European markets. This has the potential to create unparalleled opportunities and advantages in a range of areas including manufacturing, life sciences and financial and professional services.
Belfast Region City Deal
The Belfast Region City Deal is a £1 billion co-investment package. The UK Government has contributed £350m, the NI Executive is expected to add at least a further £350million and six councils and two universities will contribute over £150million. Direct investment from the private sector will take the overall package to over £1billion. The deal’s target is the creation of up to 20,000 new and better jobs in a 10-year programme of economic growth, including an increase of £470million GVA.
Office sector
This continues to be one of the best performing sectors in Northern Ireland. Rents are very competitive at £23.00 psf and are a significant discount when compared to Dublin (60.00 Euro psf), Cork (32.50 Euro psf), Edinburgh (£36.00 psf), Glasgow (£32.50 psf), Bristol (£37.00 psf), Leeds (£32.00 psf), Manchester (£37.50 psf), Birmingham (£37.00 psf) and Liverpool (£25.00 psf). Office yields at 5.75 per cent offer are also at a discount in comparison to the UK (4.75 per cent) and Dublin (4.00 per cent). We expect there will be future yield compression and rental growth in this sector.
Industrial and logistics sector
This sector is expected to see huge growth over the next five years with no speculative schemes on site and nearly 2 million sq ft of unfulfilled requirements. Current rents have risen considerably in the last few years but are still off a low base of £4.50 psf compared to Dublin (10.50 Euro psf), Cork (8.50 Euro psf), Edinburgh (£9.50 psf), Glasgow (£8.75 psf), Bristol (£7.50 psf), Leeds (£6.75 psf), Manchester (£6.95 psf), Birmingham (£7.75 psf) and Liverpool (£6.50 psf). We expect strong rental growth as prime supply is very limited and will reach levels that make speculative development possible. Industrial yields at 5.75 per cent offer are also discounted from those in the UK (4.00 per cent) and Dublin (4.75 per cent).
Retail sector
Belfast retail has faced a succession of major challenges, including the shutdown caused by Covid. We believe it will begin to pick up towards the end of 2021, due to the easing of restrictions and driven by further growth in tourism, increased city centre living and cross-border shopping.
Multifamily sector
There is a huge opportunity in this sector with strong demand and affordable levels of rent. Belfast City Council is strongly promoting city centre living. This will involve significant investment from the private sector and will be further driven by growth in the commercial property sectors.
Low carbon
Belfast City Council has established a Resilience and Sustainability Board with an ambition to make the transition to a low-carbon economy in a generation. This is seen as a key objective of local government which will help future-proof the city and wider region.
