Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump began to take suppress in September 2008, it drained the confidence coming from many investors and current market nose-dived plus the general economic climate. But with the signs of economic recovery beginning to look at hold again, what prospects are there for upset in the industrial property trade?
When industrial and commercial property prices reached a new low, it signaled two things. Firstly that the market was severely depressed and was likely keep that way for several years, but that the bottom of the trough had been reached of which the sole method out, was up. With the market having stabilized at its new low, kent ridge hill residences it meant that the glut of distressed properties that are already 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 signs and symptoms of recovery as far back as in the commercial 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 probability. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now is an excellent time to buy. As confidence returns to the economy, the chance of new letting agreements is booming and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. Always be forecast until this trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is this specific may well lead a good industrial property boom in 2014/15. However with regarding long gestation period for first time developments to go to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction can start to take place.
All buying this has grown a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as quick to medium term prospects are looking very positive, and this is the time to speculate and sow.