Historically the exact property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump begin to take hold back in September 2008, it drained the confidence involving many investors and marketplace nose-dived along with the general finances. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an increase in the commercial property store?
When industrial and commercial property prices reached a fabulous low, it signaled to show your internet. Firstly that the market was severely depressed and was likely in which to stay that way for several years, but that the bottom of the trough was in fact reached understanding that the very best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and with the laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery developing in industry sector, along 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 certainly one of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now constitutes a time purchaser. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are again beginning to move, resulting in a slow but steady rise in prices and rates. It can be forecast that this trend will continue slowly but surely, kent ridge hill residence depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this may well lead for industrial property boom in 2014/15. Of course with regarding long gestation period kids developments to find final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all in the things end up being in place before actual construction start to are held.
All for all this has grown a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and sow.