Historically the property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take hold back in September 2008, it drained the confidence coming from many investors and marketplace nose-dived plus the general economic situation. But with the signs of economic recovery beginning to look at hold again, what prospects are there for becoming bitten in the commercial property market?
When industrial and commercial property prices reached another low, it signaled to show your internet. Firstly that the market was severely depressed and was likely remain in that way for several years, but as well that the bottom of the trough ended up reached understanding that the very best out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and that isn’t laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs of recovery as far back as in sector sector, together 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 an illustration of this the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now is an effective time invest in. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are once again beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast that trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this specific may well lead for industrial property boom in 2014/15. Not surprisingly with this long gestation period for first time developments to arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, kent ridge hill residences finance – all of these things end up being in place before actual construction will start to reside.
All buying this is now a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and sow.