Tourism and education lead Belfast boom

Investment into education and tourism is driving growth across Belfast, according to Deloitte’s inaugural crane survey for the city.

It found that while just 413 student beds were delivered during the academic year, there were almost 2,500 student beds across six developments under construction.

Growth in the education sector is being driven by the relocation of the University of Ulster’s primary campus from Jordanstown to Belfast, which will bring 12,500 students into the city centre by 2019.

Deloitte said the signifcant rise in number of beds under construction currently “should ensure the city is well provided for”.

Worldwide recognition as the place where Game of Thrones is filmed has helped to make Belfast a major tourist attraction, which in turn is boosting leisure development.The city council has an ambition to double tourism revenues (from £483m in 2013) by 2020. As part of this it wants 2,500 new hotel bedrooms built by 2021.

Work began on seven hotel developments in 2016, with two completing. There are a more than 1,000 hotel bedrooms currently under construction, which will push the total number of hotel rooms in Belfast to more than 5,000.

While education and tourism-related development has surged, the typical sectors have lagged behind.

Residential remains subdued with just 84 homes constructed in 2016 and a further 56 under construction.

There was only one new office start last year, with just over 200,000 sq ft of new space completed in 2016. Just 365,000 sq ft is currently under construction. However, Belfast is doing well at attracting tenants with all but City Quays, developed by Belfast Harbour Commissioners, being prelet or pre-sold. The dearth of space has also boosted rents, which for grade-A space have increased from £16 per sq ft to £20 per sq ft and are expected to increase further to £22 per sq ft.

As part of the Belfast Agenda, the council has set a target of 1.5m sq ft of grade-A space being delivered by 2021, which Deloitte said it expected to lead to more planning applications being submitted this year.

“Looking forward, the foundations for accelerated growth are being laid,” concludes Deloitte’s Crane Survey. “Universities create talent, and through graduate retention more jobs are going to come to the city… There is every reason to be optimistic that 2016 has set the foundations of a bright new chapter in the city’s future,” said Simon Bedford, partner and head of Deloitte Real Estate.