Historically the exact property development market in Nigeria has been vibrant. Even so the current world economic slump began to take hold back in September 2008, it drained the confidence associated with many investors and marketplace nose-dived considering the general economy. But with the signs of economic recovery beginning to look at hold again, what prospects are there for upset in the industrial property store?
When industrial and commercial property prices reached your own low, it signaled two things. Firstly that the market was severely depressed and was likely in which to stay that opportunity for several years, but as well that the bottom of the trough had been reached and kent ridge hill residences price that the sole method out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and with the laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the indications of recovery going on in the commercial 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 an illustration of this the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an effective time to order. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. It is forecast that this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking situation.
Current thinking is until this may well lead to an industrial property boom in 2014/15. Of course with this long gestation period kids developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all in the things should be in place before actual construction can start to take place.
All buying this has grown a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as the short to medium term prospects are looking very positive, and it is now time to speculate and make an investment.