Foreign businesses in Northern Ireland are looking to move because of Brexit, the Royal Institution of Chartered Surveyors has warned.
In survey of its membership, the institution also found that surveyors believe it is likely firms will choose to move “at least some part” of their operations outside of the UK post-Brexit.
The professional body asked its members across the UK if they had seen any evidence firms planned to move their operations from the UK in light of the Brexit vote. According to the survey, its members in London and Northern Ireland had the largest number of contributors “claiming to have seen firms looking to relocate”.
The industry body said its fourth-quarter 2016 UK commercial property market survey also highlights that more than 50 per cent of its members based in London, Northern Ireland and Scotland think companies will chose to move “at least some part of their business activity away from Britain as a result of Brexit”.
Stalled by Brexit
Martin McDowell, managing director of Osborne King, Belfast, who participated in the survey, said: “Northern Ireland has been the slowest-recovering region of the UK following the global recession: 2016 started positively but the Brexit vote stalled activity in its tracks.
“However we may yet benefit from spin-off/back-office functions associated with the influx of investment into Dublin. Uncertain times though.”
However, property consultant CBRE is upbeat about potential “advantageous benefits” the North may have over the UK as the effects of Brexit unfold despite previously indicating that investment stalled in Belfast during 2016.
Miles Gibson, a former senior civil servant with the UK treasury and the cabinet office, who is now head of research with CBRE UK, believes “weaker sterling, a unique tax regime, a lower dependence on migrant labour than other parts of the UK, and the likelihood of special Border arrangements with the Republic of Ireland” could help the North.
The latest RICS survey also shows that foreign investment interest in Northern Ireland’s commercial property sector continues to fall.
Although local demand for retail, office and industrial space was strong in Q4 last year, inquiries from foreign investors fell for the third quarter in a row.
