Historically the exact property development market in Nigeria has been vibrant. But when the current world economic slump started take suppress in September 2008, it drained the confidence coming from many investors and marketplace nose-dived coupled with general financial crisis. But with the signs of economic recovery beginning to look at hold again, what prospects are there for becoming bitten in the industrial property markets?
When industrial and commercial property prices reached a fabulous low, it signaled two things. Firstly that the market was severely depressed and was likely to stay that path for several years, but as well that the bottom of the trough was in fact reached in which the very best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and with the laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the indications of recovery occurring in industry 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 certainly one of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now constitutes a time to order. As confidence returns to the economy, the opportunity for new letting agreements is booming and kent ridge hill residences showflat properties are once again beginning to move, leading to a slow but steady rise in prices and rates. Usually forecast until this trend continue slowly but surely, depleting the supply surplus may 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. Not surprisingly with any long gestation period kids developments arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things end up being in place before actual construction can begin to are held.
All buying this is already a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the next step is to speculate and make an investment.