Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump did start to take restrain in September 2008, it drained the confidence associated with many investors and current market nose-dived considering the general economic situation. But with the signs of economic recovery beginning to take hold again, what prospects are there for an upsurge in the commercial property market?
When industrial and commercial property prices reached a good solid low, it signaled 2 things. Firstly that the market was severely depressed and was likely to stay that way for several years, kent ridge residence but additionally that the bottom of the trough were definitily reached this the sole method out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and together with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the warning signs 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now constitutes a time invest in. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are again beginning to move, resulting in a slow but steady rise in prices and rates. It can be forecast that trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Of course with regarding long gestation period moms and dads developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction will start to reside.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and develop.