Historically the exact property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take wait and see in September 2008, it drained the confidence coming from many investors and the nose-dived along with general financial crisis. But with the signs of economic recovery beginning to take hold again, what prospects are there for a resurgence in the economic property trade?
When industrial and commercial property prices reached a fabulous low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that means for several years, but that the bottom of the trough had been reached this the greatest out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and with the 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 and symptoms of recovery going on in industry sector, other than 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 costs being the small sum of they are, now constitutes a time to buy. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are again beginning to move, leading to a slow but steady rise in prices and rates. Usually forecast until this trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is until this may well lead with regard to an industrial property boom in 2014/15. Of course with this long gestation period for first time developments to arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction will start to take place.
All within all this is now a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, kent ridge residence as of course to medium term prospects are looking very positive, and the next step is to speculate and make an investment.