Stuart Nevin, Director at Cleaver Fulton Rankin, offers an overview of emerging trends in Northern Ireland’s real estate market.
Property market forecasting is inherently uncertain. While 2025 may best be described as a “momentum‑building” year for Northern Ireland, marked by stable inflation and strong commercial property sales, the outlook for 2026 appears even more optimistic. With easing mortgage conditions, a resilient local economy and sustained low unemployment, the market continues to experience strong buyer demand.
However, significant challenges remain. Affordability pressures persist, housing supply is constrained, and the global economy continues to face uncertainty as well as geopolitical tensions.
This raises an important question: despite the headline growth, are we still operating within a distressed market, and what implications might this have for the volume and nature of real estate disputes in Northern Ireland?
Commercial & development considerations
Key commercial and development issues in 2026 include:
– Mass valuation appeals: A new non-domestic valuation list takes effect in April 2026. Draft valuations published in late 2025 are likely to lead to a significant increase in appeals throughout 2026 as businesses challenge their updated Net Annual Values, which are based on April 2024 rental values.
-Tenant insolvency: Ongoing economic turbulence and high operating costs, including a National Living Wage increase in April 2026, are expected to keep insolvency rates elevated in retail and hospitality. This is anticipated to give rise to additional rent-related issues and enforcement actions including the activation of lease guarantees.
-“Un-neighbourly” matters: As urban density increases, disputes over rights of light, party walls and nuisance claims are set to become more common as parties seek clarity and protection of their rights. Landowners may feel emboldened by recent case law (e.g., Cooper v Ludgate House Ltd) to seek higher damages for development projects impacting their light.
-Planning and environmental challenges: As the NI Executive pushes forward with infrastructure upgrades to meet 2030 clean-power targets, disputes over land rights for electricity and energy projects are predicted to increase.
Residential considerations
-Building safety liability: Litigation under the Building Safety Act 2022 is likely to continue increasing as parties navigate the scope of the legislation. Courts are expected to use Building Liability Orders more robustly to hold associated parties accountable for safety defects.
-Compliance and safety litigation: Enforcement of the Private Tenancies Act (NI) 2022 is expected to peak in 2026. Disputes are likely to centre on continuing offences involving tenancy deposit protection and compliance with mandatory standards for smoke, heat, and carbon monoxide alarms.
Future outlook
Northern Ireland’s real estate market remains buoyant in early 2026, outperforming much of the UK in price growth. The residential sector is particularly strong, while the commercial market is expected to gain further momentum as interest rates ease and investor confidence improves.
Challenges remain. The non‑domestic rating revaluation taking effect in April 2026 is a significant pressure point for many commercial occupiers. At the same time, rising rents continue to shape the rental market, setting the stage for increased friction as new tenancy laws come into force and regulatory scrutiny intensifies.
The disputes landscape will remain dynamic as these market forces converge.
This article has been produced for general information purposes and further advice should be sought from a professional advisor. Please contact our Real Estates Disputes team at Cleaver Fulton Rankin for further advice or information.
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