Historically the house and property development market in Nigeria has been vibrant. Coverage the current world economic slump started to take suppress in September 2008, it drained the confidence involving many investors and current market nose-dived plus the general economic situation. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the commercial property store?
When industrial and commercial property prices reached another low, it signaled a pair of things. Firstly that the market was severely depressed and was likely in which to stay that means for several years, but additionally that the bottom of the trough was in fact reached understanding that the very best out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and at a time laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery occurring in the commercial sector, by means of 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 a good example of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now is an effective time purchase. As confidence returns to the economy, the opportunity 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 this specific trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. However with regarding long gestation period moms and dads developments to find final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction will start to show up.
All for all this is already 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 kent ridge residence sow.