Posted on Thursday 13 August 2015 by Ulster Business

Belfast office rent jump 7 percent but still cheap

Growing demand for a dwindling supply of office space in Belfast helped push rents in the city up by 7% in the first half of the year.

That’s according to the latest report from Colliers which found Belfast put in the strongest performance of all UK cities.

Despite the rally in prices here, at £15.50 a square foot per year prime office space in Belfast is still by far the cheapest of all UK cities.

The next cheapest rental value in Colliers report is Leeds at £27/sq ft followed by Bristol and Edinburgh, both at £28.50.

At the other end of the scale is the City of London at £67.50 and London’s West End at £122.50.

Ian Duddy, Director at Colliers International in Belfast, said the Belfast’s upward trend began last year.

“For the past 12 months Belfast has shown its office market is on the up, due to a confident market, strengthening economy and shortage of good quality space, something that is likely to continue.”

The Colliers International’s Office Snapshot showed that Dublin saw the most significant increase of all with office rents up 25% in the six months to the end of June.

That compares to an increase of just 3.8% in the City of London, for 4.6% in Manchester, 3.6% in Edinburgh and 1.8% in Bristol.

Meanwhile, the growth in rental values across other European cities reflected a welcome but delayed recovery of regions impacted hardest by the financial crisis, with rental growth in Germany and France easing and those in Spanish cities gathering pace.

Rents in Germany’s powerhouse cities of Berlin and Frankfurt climbed 1.9% and 1.3% respectively while rents in Paris remained unchanged.

Barcelona saw rents grow 2.8% and Madrid 2% while office rental growth in Lisbon was pegged at 4% and Milan at 2.5%.

Eastern Europe and Russia has witnessed a mixed picture with rents in Bratislava up 6.9% but those in St Petersburg down 6.4%, in Warsaw down 4.2% and in Minsk down 5.9%, the latter falling on a mixture of short-term supply imbalances and weak economic growth in Russia and Ukraine. 

 

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