Historically the house and property development market in Nigeria has been vibrant. Even so, if 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 plus the general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for upset in the economic property area?
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 in which to stay that approach for several years, but that the bottom of the trough were definitily reached understanding that the sole method out, was up. With all the market having stabilized at its new low, kent ridge hill residences price it meant that the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the indications of recovery occurring in the commercial sector, and 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 prospect. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now constitutes a time purchase. As confidence returns to the economy, the potential for new letting agreements is booming and properties are had been beginning to move, creating a slow but steady rise in prices and rates. It can be forecast this specific trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is until this may well lead to an industrial property boom in 2014/15. Certainly with this long gestation period a great deal of developments to come to final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction can begin to reside.
All within all this is already a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and now is the time to speculate and put.