Historically the exact property development market in Nigeria has been vibrant. Even so, if the current world economic slump did start to take suppress in September 2008, it drained the confidence associated with many investors and 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 becoming bitten in the commercial property trade?
When industrial and commercial property prices reached another low, it signaled a couple of things. Firstly that the market was severely depressed and was likely keep that means for several years, but that the bottom of the trough had been reached in 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 had been 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, the last 12 months has seen the signs and symptoms of recovery occurring 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 one among 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 buy. As confidence returns to the economy, possibly new letting agreements is booming and properties are had been beginning to move, kent ridge hill residence bringing about a slow but steady rise in prices and rates. It is forecast this specific trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is this kind of may well lead a good industrial property boom in 2014/15. Keep in mind with any long gestation period for first time developments to come to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction will start to show up.
All for all this has grown a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and make an investment.