Historically the home or property development market in Nigeria has been vibrant. Even so the current world economic slump started to take restrain in September 2008, it drained the confidence associated with your many investors and current market nose-dived plus the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the commercial property area?
When industrial and commercial property prices reached a good solid low, it signaled 2 things. Firstly that the market was severely depressed and kent ridge hill residences was likely remain in that approach for several years, but additionally that the bottom of the trough had been reached this the greatest out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the warning signs 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 certainly one of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now constitutes a time to buy. As confidence returns to the economy, possibly new letting agreements is booming and properties are much more beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast this kind of trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is until this may well lead for industrial property boom in 2014/15. Of course with this long gestation period a great deal of developments to arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction can start to show up.
All in many this has grown to be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as of course to medium term prospects are looking very positive, and this is the time to speculate and put.