Historically the home or property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take wait and see in September 2008, it drained the confidence coming from many investors and the actual marketplace nose-dived plus the general financial crisis. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for upset in the economic property store?
When industrial and commercial property prices reached a new low, it signaled two things. Firstly that the market was severely depressed and was likely in which to stay that approach for kent ridge hill residences price several years, but as well that the bottom of the trough were definitily reached this the very best out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that had been 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, the last 12 months has seen the indications of recovery developing in industry 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 certainly one of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is a good time invest in. As confidence returns to the economy, the potential for new letting agreements is booming and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast that trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this may well lead for industrial property boom in 2014/15. Certainly with regarding long gestation period for first time developments arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all in the things end up being in place before actual construction can start to are held.
All buying this will finally be a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and now is the time to speculate and invest.