Could Northern Ireland ‘have its cake and eat it’ after Brexit?
Northern Ireland is now right at the centre of the Brexit debate. In the latest update of our research on Brexit, we investigate whether Northern Ireland could end up in a stronger position after Brexit, with the ability to capitalise on a range of choices not available to the rest of the UK.
Two years on from the EU referendum, the issue of the land border between Northern Ireland and the Republic of Ireland has become pivotal in the Brexit debate. With 25,000 people crossing the border every day, and nearly £3bn of exports from Northern Ireland to the Republic of Ireland in the last 12 months, the importance of securing an agreement to the Northern Ireland economy cannot be overstated.
The 1998 ‘Good Friday’ Agreement says that Northern Ireland citizens may be Irish or British citizens, or both. Our report argues that this extremely unusual capability of public policy in Northern Ireland to allow both one thing and the other at the same time could prove attractive to real estate investors for its flexibility.
It might, for example, allow Northern Ireland businesses to offer lower levels of friction in trade with the Republic of Ireland market than is available to the rest of the UK.
Belfast could also be presented in a much more favourable light to investors, including international investors. Investors will potentially begin comparing the returns and risks to real estate investment in Belfast more systematically to those in English, Welsh or Scottish cities of a similar size and with a similar real estate character. If Belfast is able to offer a higher resilience to Brexit than comparable UK cities then investment could be expected to rise as a consequence.
The report also finds that some of the main risks of Brexit for other parts of the UK are less likely to materialise in Northern Ireland, including significant migrant outflow leading to labour shortages. 7% of workers in Northern Ireland are non-UK EEA nationals, which is the highest percentage in any part of the UK outside London. But this includes Irish nationals – who, of course, the UK Government has committed to continue to allow over the border after Brexit under the pre-existing Common Travel Area arrangements.
For businesses in the Republic of Ireland, the relative ease of doing business in Northern Ireland compared with the rest of the UK might also cause them to refocus trade towards Northern Ireland and away from the rest of the UK, providing a further boost.
So there may now be a unique opportunity for Northern Ireland to ‘have its cake and eat it’ after Brexit. The Northern Ireland Assembly looks likely to be given a role in deciding precisely how to implement the final Brexit outcome. Recent history shows that the EU, the Irish Government, and the UK Government have all conceded that some issues are best decided locally. We think EU and UK negotiators are likely to be attracted to a similar approach to Brexit.
Read the report here
2018 was an outstanding year of office take-up across the UK regional and SE office markets. Can 2019 reach the same dizzying heights? CBRE’s new UK Office Property Perspective reveals record breaking take-up activity (of nearly 7.5 million sq ft) in...
The term “smart” can be a prefix for a whole host of things: phones, motorways, tickets, cards, buildings. And also cities, many of which are making concerted attempts to become smarter as a way of generating a range of economic, social, cultural and...
Over the past three years, HMRC have taken over 2.2 million sq ft of new office space across 11 regional centres. But have these deals been pivotal to the success of the UK regional office markets or have they simply added to the already growing...
CBRE’s latest London report ‘Why we can bank on London’ explores the three key challenges facing the financial sector: Brexit, changing regulation and the growing influence of fintech. The UK is the most specialised major economy in financial services...