Insight Series: Northern Ireland Market Report 2017

NORTHERN IRELAND: THE BASICS

Northern Ireland is the newest and smallest part of the United Kingdom, located in the northeast of Ireland. It is renowned for its rolling green hills and legendary culture of hospitality. With a population of 1,810,863 at the time of the 2011 census, Northern Ireland comprises around 3% of the UK s population and 30% of the island of Ireland s population.

Created in 1921, Northern Ireland is governed from Stormont, the seat of the Northern Ireland Assembly, which receives devolved powers from the Parliament of the United Kingdom. The country shares the cultures of both the British mainland and the Republic of Ireland, but its history has also been riven by friction between unionists (loyal to the UK) and nationalists (seeking a united Ireland independent of the UK). The period of sectarian conflict between these two factions, which were also broadly divided along religious lines, is known as the Troubles.

Since peace was definitively restored in 1998, Northern Ireland s economy has blossomed, reconfiguring a rich industrial heritage for the digital age. Economic growth is driven largely by the service sector, with key segments including financial services, television production, tourism, and a world-leading digital technology industry.

Foreign direct investment continues to make a significant contribution to Northern Ireland s economy, and is attracted by one of the youngest and best- educated workforces in the UK. According to the Higher Education Statistics Agency, more than 4,000 people graduate with business qualifications every year in Northern Ireland. This young, talented pool of workers is concentrated primarily in the capital city of Belfast, which alone is home to 45,000 students.

A historic 7.5% reduction in the business tax rate, planned for 2018, promises to amplify the global clout of Northern Ireland s booming tech and finance sectors. In anticipation Belfast, the capital city and economic hub, is injecting cash into fashionable new districts to cater for a further influx of businesses and workers.

Such favourable economic conditions are already firing up the long dormant property market. Despite a recent resurgence, prices are still around 46% down on their pre-crisis peak. However, given the market s strong fundamentals and a widening gap between demand and supply, they are unlikely to remain that way for long.

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