Trends in Northern Ireland’s Commercial Property Market: Growth Areas and Opportunities

As 2024 comes to a close and we look ahead to 2025; Northern Ireland’s commercial property market continues to show resilience and evolution in the face of economic challenges and opportunities. 

For Businesses, Developers, and Investors alike, understanding the latest trends is essential to making informed decisions in this dynamic landscape. 

Real Estate Associate Izabela Treacy identifies key growth areas shaping the sector and exciting emerging opportunities – illustrated with some local examples paving the way.

1. The Rise of Mixed-Use Developments

Mixed-use developments are becoming a focal point for urban planning and investment. These projects, which integrate residential, commercial, and leisure spaces, are gaining traction in cities like Belfast and Derry/Londonderry. Mixed-use spaces appeal to a growing demand for convenience, sustainability, and vibrant community hubs.

Opportunity:
Investors and developers can capitalise on planning policies that encourage urban regeneration. Areas such as the Titanic Quarter and Belfast’s Cathedral Quarter offer fertile ground for such projects, supported by government initiatives aimed at revitalising city centres. 

Local Case Study | A great example of this is the new urban community being built on Queen’s Island; the mixed use Loft Lines development in Belfast’s Titanic Quarter.

2. Demand for Green and Sustainable Buildings

Environmental, Social, and Governance (ESG) considerations are reshaping the commercial property landscape. Tenants and buyers increasingly favour buildings with high energy efficiency ratings and sustainable features, driven by corporate sustainability goals and rising energy costs.

Opportunity:
Investors can take advantage of tax incentives and grants for energy-efficient upgrades. Retrofitting older properties with green technology, such as solar panels and efficient HVAC systems, adds value and ensures compliance with stricter environmental regulations. 

Local Case Study | The iconic 1869 Ewart building has been developed & extended into Grade A office accommodation in the heart of Belfast city centre; and is a perfect example of a new, sustainable space; certified BREEAM ‘Excellent’, with a whole host of leading ESG features incorporated, including CHP & Photovoltaics.

3. Growth of Logistics and Industrial Spaces

The ongoing boom in e-commerce is fueling demand for warehouses, distribution centres, and industrial properties. Northern Ireland’s strategic location as a gateway between the UK and EU markets amplifies its appeal for logistics hubs. 

Opportunity:
Industrial zones near Belfast Harbour, the A1/M1 corridors, and Derry/Londonderry are prime targets for investment. The Northern Ireland Protocol continues to give NI unique access to both UK and EU markets, creating a competitive advantage for logistics businesses.

Local Case Study | Belfast is home to a whole new host of logistics warehouses & spaces, including some long established companies which have recently redeveloped and extended their storage spaces such as Woodside Logistics Group  warehouses located in Belfast & Ballyclare.

4. Expansion of the Life Sciences and Technology Sectors

Northern Ireland’s thriving life sciences and tech sectors are increasing demand for specialised office and research spaces. Innovation hubs and science parks are becoming essential infrastructure to support growth in these industries.

Opportunity:
Areas like the Belfast Innovation District and the planned expansion of science parks across NI present investment opportunities. Developers and landlords should consider customisable spaces to cater to evolving tech and research needs.

Local Case Study | Artemis Technologies is one of many companies leading the way in the life science and tech sectors when it comes to developing and extending their local presence; with a new, revolutionary £37.6m UK Digital Twin Centre due to open early 2025.

5. Resurgence of the Retail Sector

While traditional high streets have faced challenges, retail parks and destination shopping centres are seeing a resurgence. Consumers are drawn to retail spaces that combine shopping, dining, and leisure experiences, especially those with strong digital integrations.

Opportunity:
Investors may consider targeting well-located retail parks and urban areas undergoing regeneration. Enhancing retail properties with experience-based features, such as pop-up shops and interactive spaces, can attract tenants and customers alike.

Local Case Study | A prime example (and one of many from 2023-2024) is Forestside Shopping Centre which was bought for £42 million by Mussenden Properties Limited, and  has been redeveloped and revitalised throughout 2024.

6. Co-Working and Flexible Office Spaces

Hybrid working trends have reshaped demand for office space. Businesses now seek smaller, flexible leases in co-working spaces that cater to fluctuating workforce needs. Belfast, in particular, has seen a rise in demand for high-quality, adaptable office environments.

Opportunity:
Investors and developers could capitalise on this trend by focusing on central locations and upgrading existing offices to meet modern expectations for amenities, connectivity, and design.

Local Case Study | Glandore is one of the leading Belfast companies to offer dynamic, supportive, flexible and friendly work spaces in the city centre. Since 2001, Glandore has now grown to offer over 4,000 desks in Dublin, Belfast and Cork.

7. Regional Development Beyond Belfast

While Belfast remains the epicentre of commercial activity, regional towns are experiencing growth as businesses look for more affordable alternatives. Towns like Lisburn, Newry, and Ballymena are seeing an uptick in activity due to infrastructure improvements and decentralisation efforts.

Opportunity:
Developing or refurbishing commercial properties in these regional hubs offers a chance to benefit from lower competition and growing local demand.

Local Case Study | Lakelands Retail and Leisure Park in Enniskillen is a perfect example of this new kind of hub; which comprises retail units, garden centres, an indoor adventure playground, hotel, cinema, bowling alley, coffee shop, restaurants, a service station and extensive parking.

8. Leveraging Digital Innovation

Technology is transforming how commercial property is marketed, managed, and operated. From virtual tours to blockchain-based transactions, the digitalisation of the property market is accelerating.

Opportunity:
Landlords and agents who adopt these tools can streamline operations and offer enhanced customer experiences. This is particularly valuable in attracting overseas investors or tenants.

Local Case Study | FintrU is one of the main leaders on this front (based in the Gasworks), with other new international companies following suit to set up and lease their bases in existing office spaces throughout the city.

Navigating the Opportunities with Expert Legal Support

The evolving commercial property market in Northern Ireland presents a wealth of opportunities but also requires navigating complex legal and regulatory landscapes. From securing planning permissions and handling lease negotiations to ensuring compliance with tax and environmental obligations, expert legal advice is crucial.

Why Choose Us?

Izabela and our award winning team of commercial property solicitors have extensive experience helping clients seize market opportunities while mitigating risks. 

Whether you’re investing in a logistics hub, developing a mixed-use space, or negotiating a lease for green offices, we’re here to guide you every step of the way.

Get in Touch

Strike while the iron is hot and contact Izabela and our team today to discuss how we can help you achieve your commercial property goals for 2025.

Call 028 90323864 or Make an Enquiry today.