Historically the exact 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 coming from many investors and current market nose-dived plus the general economy. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the economic property markets?
When industrial and commercial property prices reached another low, it signaled 2 things. Firstly that the market was severely depressed and was likely to stay that approach for several years, but also that the bottom of the trough ended up 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 pouring in had stopped, and together with laws of supply and demand kent ridge hill residences price in operation, while excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the signs and symptoms of recovery developing in sector 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now a great time purchaser. As confidence returns to the economy, possibly new letting agreements is rising and properties are much more beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast this kind of trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is until this may well lead to an industrial property boom in 2014/15. Keep in mind with any long gestation period a great deal of developments to go to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction can start to are held.
All for all this will finally be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as the short to medium term prospects are looking very positive, and the time has come to speculate and put.