Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump did start to take restrain in September 2008, it drained the confidence out of many investors and current market nose-dived coupled with general finances. But with the signs of economic recovery beginning to look at hold again, what prospects are there for a resurgence in the commercial property store?
When industrial and commercial property prices reached a fabulous low, it signaled 2 things. Firstly that the market was severely depressed and was likely in which to stay that means for several years, but as well that the bottom of the trough ended up reached and that the very best out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and at a time laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs of recovery as far back as in sector sector, by means of 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 an illustration of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, kent ridge residence now is an excellent time to order. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are had been beginning to move, bringing about a slow but steady rise in prices and rates. Is usually forecast that trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is until this may well lead to an industrial property boom in 2014/15. Of course with any long gestation period for first time developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction starting to take place.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as of course to medium term prospects are looking very positive, and it is now time to speculate and sow.