Historically the house and 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 nose-dived along with 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 commercial property markets?
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 keep that opportunity for several years, but that the bottom of the trough were definitily reached and that the sole method out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and with the laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the symptoms of recovery occurring in industry sector, by means of 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 outlook. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now is an effective time purchase. As confidence returns to the economy, the chance of new letting agreements is booming and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. Is usually forecast this kind of trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead for industrial property boom in 2014/15. Keep in mind with regarding long gestation period kids developments arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, kent ridge hill residences finance – all of the listed things must be in place before actual construction can start to reside.
All in many this has grown to be a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as of course to medium term prospects are looking very positive, and the next step is to speculate and invest.