Belfast is becoming the next big thing as prices rise by 50 per cent, writes Fiona Tyrrell

Eyes are turning north of the border as canny investors dip their toes into the Belfast property market.

Phenomenal price growth, political stability and a slowdown in the market in the south, are prompting southern investors to investigate the Northern Ireland market.

House prices in Northern Ireland were up 50 per cent in the last 12 months, the largest growth of all the UK's regions, according to new figures released by the department for communities and local government earlier this week.

Northern Ireland is "enjoying a tremendous renaissance" according to estate agent Eric Cairns senior partner with the Northern Ireland estate agency. The "feelgood factor is very much in evidence", he says.

The so-called peace dividend and significant population growth is having a knock-on effect on house pricesand busy estate agents report that prime property, such as city centre apartments, are sold as soon as the sign goes up and waiting list with 1,000s of names are not unheard of.

This soaring property market is attracting much interest from southern investors. This, according to Cairns, has been growing in the last three to four years, but in the last 18 months there has been a "little avalanche", he says.

Once property prices started "getting out of sight in the south people stared looking at other parts of the island that may be more beneficial," he says.

People discovered they could buy something affordable and better value for money in Northern Ireland, he explains.

A semi-d in a nice area close to Belfast city centre would have cost £225,000 (€328,619) two years ago, today it's worth £350,000 (€511,185).

The interest from the south is right across the board from small-time investors to major development companies, he says.

Rents are not comparable to Dublin, on average between £800-£1,000 (€1,168-1,461), but capital appreciation is the big draw, he explains.

On the small scale any launch of new development will prompt good interest from buy-to-let investors from the south, he says.

His company has a list of 12-15 "serious investors" from the south who buy on his recommendation.

One Dublin-based property investment company recently bought 190 apartments in Belfast. The ambitious redevelopment of the old shipyards into the Titanic Quarter is expected to be launched shortly.

Pat Doherty's Dublin-based Harcourt Holdings is the lead developer on the regeneration scheme. Eric Cairns Partnership will be handling the launch and already there are 5,000 people who indicated interest in the scheme on a list. Prices for one-beds in the development will start at £250,000 (€365,104).

"You can reasonably suggest that 2,500-3,000 of those will turn out to have serious interest. About 15 per cent of those are from the south."

A 48-acre site in Bangor with planning permission for 400 houses was sold earlier this month for £65 million (€95 million). While the site was purchased by a Belfast-based builder, two Dublin companies were the runners up.

Also in Belfast, Stanley Holdings, the developer behind Belmayne, the lavishly advertised new development on the Malahide Road in Dublin, have recently launched a classy residential scheme in the redeveloped former Ormeau Bakery in south Belfast.

Investors are not only coming from the south but from across the water with Belfast fast-becoming a favourite among the bigger London investment companies.

A nice redbrick semi-d in Belfast will cost £300,000-£450,000 (€438,125-€657,187).

A three-bed new home costs between £275,000 and £400,000 (€401,570-€584,102) while apartments in the city centre will cost from £250,000 and £750,000 (€365,064- €1,095 million).