Historically the real estate development market in Nigeria has been vibrant. But when the current world economic slump began to take suppress in September 2008, it drained the confidence coming from many investors and the market nose-dived along with general economic climate. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an increase in the economic property trade?
When industrial and commercial property prices reached a fabulous low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that approach for several years, but that the bottom of the trough was in fact reached this the very best out, was up. Is not market having stabilized at its new low, kent ridge hill residence it meant how the glut of distressed properties that were pouring in had stopped, and at a time laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the indications of recovery developing in the commercial sector, other than 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 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 for new letting agreements is rising and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. Usually forecast this specific trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead for industrial property boom in 2014/15. Certainly with associated with long gestation period for new developments to go to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction can begin to are held.
All in all 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 put.