Historically the property development market in Nigeria has been vibrant. Coverage the current world economic slump began to take restrain in September 2008, it drained the confidence involving many investors and the actual marketplace nose-dived coupled with general economy. But with the signs of economic recovery beginning to consider hold again, what prospects are there for upset in the commercial property market?
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 keep that opportunity for several years, but additionally that the bottom of the trough are already reached and that the best out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and at a time laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery taking place in sector sector, by means of 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 certainly one of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now is an excellent time purchaser. As confidence returns to the economy, the chance of new letting agreements is booming and properties are much more beginning to move, resulting in a slow but steady rise in prices and kent ridge hill residence rates. Always be forecast that trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking situation.
Current thinking is that this may well lead with regard to an industrial property boom in 2014/15. Of course with associated with long gestation period a great deal of developments to arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction can start to be fulfilled.
All within all this is now a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as simple to medium term prospects are looking very positive, and the next step is to speculate and invest.