Historically the property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started to take be patient in September 2008, it drained the confidence associated with many investors and the actual marketplace nose-dived along with general economy. But with the signs of economic recovery beginning to be able to 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 two things. Firstly that the market was severely depressed and was likely in which to stay that path for several years, but as well that the bottom of the trough were definitily reached of which the sole method out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and at a time laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the warning signs of recovery occurring in industrial municipal debt market sector, and 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 certainly one of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is a good time purchaser. As confidence returns to the economy, the chance of new letting agreements is booming and properties are had been beginning to move, bringing about a slow but steady rise in prices and rates. It can be forecast that trend continues slowly but surely, kent ridge hill residences depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead a good industrial property boom in 2014/15. Keep in mind with this long gestation period for first time developments to come to 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 start to reside.
All in many this is now a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as quick to medium term prospects are looking very positive, and the time has come to speculate and make an investment.