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?

Key commercial and development issues to consider in 2026 include:

  • Mass valuation appeals: Until finance minister John O’Dowd intervened to freeze the Land & Property Services’ (LPS) revaluation process for non-domestic properties, it was likely there would have been a significant increase in appeals throughout 2026 as businesses challenged their updated net annual values.
  • Tenant insolvency: Ongoing economic turbulence and high operating costs, including a national living wage increase in April, 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 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.

Among the residential considerations are:

  • 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 this year. Disputes are likely to centre on continuing offences involving tenancy deposit protection and compliance with mandatory standards for smoke, heat, and carbon monoxide alarms.

Looking to the future, 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.

Emerging trends in Northern Ireland’s real estate market Stuart Nevin says: 'Affordability pressures persist, housing supply is constrained, and the global economy continues to face uncertainty as well as geopolitical tensions'Stuart Nevin, director in the dispute resolution team at Cleaver Fulton Rankin

But challenges remain. 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.

  • Stuart Nevin is a director in the dispute resolution team at Belfast commercial law firm Cleaver Fulton Rankin.