Historically the exact property development market in Nigeria has been vibrant. Coverage the current world economic slump started take wait and see in September 2008, it drained the confidence involving many investors and current market nose-dived plus the general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the economic property store?
When industrial and commercial property prices reached a fabulous low, it signaled a pair of things. Firstly that the market was severely depressed and was likely to stay that means for several years, but as well that the bottom of the trough had been reached understanding that the only way out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and together with laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs 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 a good example of the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is a good time invest in. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are had been beginning to move, leading to a slow but steady rise in prices and rates. It is forecast that trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is that this may well lead to an industrial property boom in 2014/15. Of course with associated with long gestation period kids developments to arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, kent ridge hill residences price finance – all in the things end up being in place before actual construction can start to are held.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as of course to medium term prospects are looking very positive, and this is the time to speculate and put.