Historically the exact property development market in Nigeria has been vibrant. Even so the current world economic slump began to take be patient in September 2008, it drained the confidence associated with your many investors and marketplace nose-dived considering the general economy. But with the signs of economic recovery beginning to consider hold again, what prospects are there for becoming bitten in the commercial property area?
When industrial and commercial property prices reached another low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to keep that way for several years, but also that the bottom of the trough was in fact reached this the sole method out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and with laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the indications of recovery as far back as in industry sector, other than property prices still artificially low, this 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 one among the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is an excellent time purchaser. As confidence returns to the economy, the opportunity for new letting agreements is booming and kent ridge hill residences properties are once again beginning to move, introducing a slow but steady rise in prices and rates. It is forecast this kind of trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this may well lead a good industrial property boom in 2014/15. Certainly with regarding long gestation period for new developments arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction start to reside.
All in all this will finally be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as simple to medium term prospects are looking very positive, and this is the time to speculate and put.