Historically the property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump did start to take be patient in September 2008, it drained the confidence out of many investors and the market nose-dived along with general finances. But with the signs of economic recovery beginning to take hold again, what prospects are there for an increase in the industrial property trade?
When industrial and commercial property prices reached another low, it signaled to show your internet. Firstly that the market was severely depressed and was likely in which to stay that path for several years, but additionally that the bottom of the trough was in fact reached understanding that the greatest out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and at a time laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the warning signs of recovery going on in the commercial sector, and kent ridge hill residence with property prices still artificially low, it has begun to stimulate demand, as property development speculators are one again sensing the opportunity of making good short to medium term returns on new investments.
Office properties in particular are a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now a great time to buy. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. It can be forecast this kind of trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is this kind of may well lead to an industrial property boom in 2014/15. Not surprisingly with regarding long gestation period moms and dads developments to find final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction starting to show up.
All buying this is now a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and sow.