Historically the property development market in Nigeria has been vibrant. Even so the current world economic slump begin to take restrain in September 2008, it drained the confidence out of many investors and the market nose-dived along with the general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the economic property store?
When industrial and commercial property prices reached a good solid low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to keep that path for several years, but as well that the bottom of the trough had been reached and that the best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and at a time laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the warning signs of recovery going on in industry sector, along 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 outlook. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an effective time invest in. As confidence returns to the economy, possibly new letting agreements is rising and properties are had been beginning to move, leading to a slow but steady rise in prices and rates. It is forecast this kind of trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking situation.
Current thinking is this specific may well lead to an industrial property boom in 2014/15. Not surprisingly with any long gestation period for first time developments arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction start to are held.
All in many this is now a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as of course to medium term prospects are looking very positive, and kent ridge hill residence the next step is to speculate and make an investment.