Historically the property development market in Nigeria has been vibrant. Even so the current world economic slump did start to take wait and see in September 2008, it drained the confidence involving many investors and the market nose-dived plus the general economic situation. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the industrial property trade?
When industrial and commercial property prices reached another low, it signaled to show your internet. Firstly that the market was severely depressed and was likely keep that way for several years, but additionally that the bottom of the trough ended up reached of which the greatest out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and kent ridge hill residences showflat that isn’t laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the symptoms of recovery going on in industry sector, other than 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 costs being under they are, now a great time purchaser. As confidence returns to the economy, the potential for new letting agreements is rising and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Usually forecast until this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this kind of may well lead to an industrial property boom in 2014/15. Not surprisingly with associated with long gestation period kids developments to arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction can begin to take place.
All in all this is now a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as the short to medium term prospects are looking very positive, and it is now time to speculate and put.