Historically the property development market in Nigeria has been vibrant. But when the current world economic slump begin to take wait and see in September 2008, it drained the confidence associated with many investors and the nose-dived coupled with general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the commercial property area?
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 opportunity for several years, but as well that the bottom of the trough had been reached in which the sole method out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and that isn’t laws of supply and demand in operation, kent ridge hill residence the actual excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the symptoms of recovery as far back as in industry sector, by means of property prices still artificially low, this 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 outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now a great time to order. As confidence returns to the economy, the chance of new letting agreements is rising and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Usually forecast this kind of trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead a good industrial property boom in 2014/15. Not surprisingly with this long gestation period a great deal of developments to find 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 begin to be fulfilled.
All for all this is already a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and put.