A new report has shown that land values in Northern Ireland may have fallen to as much as 60% as their peak figures.

Commercial property firm CBRE also said that the NI hotel market is close to saturation point. In its 2010 outlook, the firm also said office rents in Belfast have stabilised after coming under pressure due to excess supply.

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While the market was improving, the next 12 months would still be "extremely challenging", the report said.

The company said a lack of bank funding for developments had contributed to the sharp decline in land value.

It added that only approximately 15,000 square metres of office lettings were transacted in Belfast during 2009.

The outlook for the Belfast hotel sector was not any brighter, with the report saying that other than a hotel planned at George Best Belfast City Airport, and another in the Titanic Quarter there is little prospect of any other new hotels being developed in the city for the foreseeable future.

(NS/BMcC)