Historically the property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take hold back in September 2008, it drained the confidence coming from many investors and the market nose-dived along with general finances. But with the signs of economic recovery beginning to take hold again, what prospects are there for upset in the economic property area?
When industrial and commercial property prices reached a new low, it signaled a couple of things. Firstly that the market was severely depressed and was likely remain in that approach for several years, but also that the bottom of the trough are already reached this the sole method out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and that isn’t laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery developing in industrial municipal debt market sector, kent ridge hill residences showflat 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 one among the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an effective time purchase. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are much more beginning to move, bringing about a slow but steady rise in prices and rates. Usually forecast until this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this may well lead for industrial property boom in 2014/15. Keep in mind with this long gestation period for new developments arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things end up being in place before actual construction will start to be fulfilled.
All within all this has grown to be a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as of course to medium term prospects are looking very positive, and it is now time to speculate and develop.