Historically the real estate development market in Nigeria has been vibrant. Even so the current world economic slump started take be patient in September 2008, it drained the confidence coming from many investors and kent ridge hill residences showflat current market nose-dived along with general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for upset in the economic property trade?
When industrial and commercial property prices reached your own low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that path for several years, but that the bottom of the trough ended up reached this the best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and that isn’t laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms 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 a good example of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now is a good time purchase. As confidence returns to the economy, the chance of new letting agreements is rising and properties are again beginning to move, introducing a slow but steady rise in prices and rates. It is forecast that trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking point.
Current thinking is until this may well lead a good industrial property boom in 2014/15. Certainly with such a long gestation period moms and dads developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction start to reside.
All in many this will finally be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and make an investment.