Historically the exact property development market in Nigeria has been vibrant. Even so the current world economic slump started to take restrain in September 2008, it drained the confidence involving many investors and the nose-dived along with general economic situation. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for a resurgence in the commercial 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 kent ridge hill residences several years, but also that the bottom of the trough had been reached and that the only way out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that had been 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, tackled . 12 months has seen the indications of recovery occurring in industrial municipal debt market sector, other than 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 certainly one of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an excellent time to order. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast that this trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. Of course with associated with long gestation period for first time developments to go to final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction will start to take place.
All buying this has grown to be 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 it is now time to speculate and make an investment.