Historically the house and property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started to take restrain in September 2008, it drained the confidence involving many investors and marketplace nose-dived coupled with general financial crisis. But with the signs of economic recovery beginning to take hold again, what prospects are there for an increase in the economic property market?
When industrial and commercial property prices reached a good solid low, it signaled two things. Firstly that the market was severely depressed and was likely in which to stay that means for several years, but also that the bottom of the trough are already reached of which the best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were actually 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, the last 12 months has seen the warning signs of recovery taking place in the commercial sector, together with 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 certainly one of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now constitutes a time purchase. As confidence returns to the economy, kent ridge residence possibly new letting agreements is rising and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. Is usually forecast this specific trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is this kind of may well lead with regard to an industrial property boom in 2014/15. However with this long gestation period a great deal of developments to find final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction can begin to be fulfilled.
All in all this is now a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as simple to medium term prospects are looking very positive, and the next step is to speculate and put.