Rent for Belfast office space hit an all time high before being hit by the effects of the September 11th terror attacks on the US, it was revealed today.
The latest report from the Valuation and Lands Agency charting the highs and lows of the city's office market said top prices dropped by some 20 per cent in the wake of the attacks as the global economic slowdown intensified.
It showed rent hit a peak of £167 per sq metre for prime locations before the headline figure fell back to £135.
The international property market had seen reverberations caused by September 11th and Belfast had been no exception, said the report.
Occupier demand, particularly from the information, communication and technology sectors had "dwindled" alongside the worldwide economic downturn, resulting in the fall in rents.
Despite that the investment market had remained steady and "the prospect for future growth was considered to be good," said the VLA, an agency within the Department of Finance.
The report, covering the period April 2000 to September 2002, also said that in terms of occupational costs - rents, rates and service charges - Belfast remained competitive with other regional centres in the UK and Ireland.
"This is a positive sign that more inward investment can be attracted to the region," it said.
The local property market agreed with the reduced figures being charged, but said the problems stemmed from the downturn in the hi-tech marketplace well before September 11th.
And Robert Toland of property advisors DTZ McCombe Pierce in Belfast said an added problem was that government and local professional practices accounted for such a large proportion of the market.
"They are not prepared to pay for top-notch accommodation because they don't realise the benefits to their business, their staff and their image.
"People here are very blinkered." Government particularly quite often "dictate" the amount they are prepared to pay.
More inward investors looking for accommodation would pep up the market , he said.
Mr Toland pointed out the good deal renters were getting in Belfast - Dublin was three times more expensive and parts of England were double that again.
PA