Having been stung by the global recession caused by the 2008 financial crisis, Northern Ireland’s property market is starting to blossom, with prices finally beginning to rise again.
"The trajectory of house prices in Northern Ireland is continuing to broadly align with the wider economic picture, as a range of indicators are pointing to positive growth,” says Samuel Dickey, spokesperson for RICS. “The evidence is that overall transaction levels are also picking up, something that we expect to see continuing into the spring and summer months, when the market is traditionally busier."
The positive news has grabbed the interest of global investors looking to take advantage of the country's lowered prices to expand their property portfolios. Whilst Northern Ireland's property prices offer excellent value for money, its private rented sector is also experiencing huge growth, forming the ideal environment for buy-to-let landlords.
"RICS has predicted house price rises of 4% for Northern Ireland during 2014, providing strong potential for investors to grow their capital through the country's property sector,” Ray Withers, Chief Executive of specialist property investment company Property Frontiers, said. “Rental yields also look promising for buy-to-let properties, with Census data showing an increase in the private rented sector of 128% in the decade to 2011.”
He added: “In the first six months of 2014 alone, this trend can be seen continuing, with an increase in rental transactions of 6.4% over the first half of the year. There has rarely been a more encouraging set of circumstances, so far as buy-to-let investment has been concerned.”
Taking this into account, Belfast is the place to be when it comes to property investment at present, according to Withers. Prices in Northern Ireland’s capital fell by 45% between July 2008 and June 2014, research by Home.co.uk suggests. Nevertheless, figures from Zoopla show that the city has finally turned a corner, with an average property price rise of 8.7% in Belfast over the past year.
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