Historically the property development market in Nigeria has been vibrant. But when the current world economic slump did start to take restrain 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 be able to hold again, what prospects are there for a resurgence in the industrial property market?
When industrial and commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that way for several years, but that the bottom of the trough ended up reached in which the sole method out, kent ridge hill residences price was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and with the laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs and symptoms of recovery as far back as in sector sector, by means of 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 prices being under they are, now is an effective time purchaser. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. It can be forecast this specific trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead to an industrial property boom in 2014/15. Certainly with associated with long gestation period for new developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction can start to take place.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as quick to medium term prospects are looking very positive, and now is the time to speculate and sow.