Historically the property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump began to take wait and see in September 2008, it drained the confidence involving many investors and the 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 area?
When industrial and commercial property prices reached a new low, it signaled to show your internet. Firstly that the market was severely depressed and was likely keep that path for several years, but additionally that the bottom of the trough ended up reached in which the best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and at a time laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs and symptoms of recovery going on 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 views. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is a good time purchase. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are again beginning to move, introducing a slow but steady rise in prices and kent ridge hill residence rates. Always be forecast until this trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. However with associated with long gestation period kids developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction will start to are held.
All in all this has grown a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as the short to medium term prospects are looking very positive, and the time has come to speculate and put.