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 the actual marketplace nose-dived coupled with general economy. But with the signs of economic recovery beginning to take hold again, what prospects are there for becoming bitten in the commercial property market?
When industrial and commercial property prices reached a fabulous low, it signaled 2 things. Firstly that the market was severely depressed and was likely to stay that means for several years, but also that the bottom of the trough had been reached understanding that the very best out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and together with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs of recovery taking place in sector sector, by means of property prices still artificially low, kent ridge hill residence 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 a good example of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is a good time purchase. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. Usually forecast until this trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is that this may well lead a good industrial property boom in 2014/15. However with any long gestation period for first time developments to find final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction starting to be fulfilled.
All within all this is already a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and this is the time to speculate and sow.