Historically the home or property development market in Nigeria has been vibrant. But when the current world economic slump started take hold back in September 2008, it drained the confidence associated with many investors and current market nose-dived along with the general finances. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an upsurge in the economic property area?
When industrial and commercial property prices reached a fabulous low, kent ridge residence it signaled 2 things. Firstly that the market was severely depressed and was likely remain in that means for several years, but additionally 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, with the excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the symptoms of recovery taking place in sector sector, and 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 an illustration of this the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now a great time to order. As confidence returns to the economy, possibly new letting agreements is rising and properties are had been beginning to move, introducing a slow but steady rise in prices and rates. Is usually forecast until 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 for industrial property boom in 2014/15. Keep in mind with regarding long gestation period kids developments to come to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction start to are held.
All in many this is already a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as of course to medium term prospects are looking very positive, and now is the time to speculate and make an investment.