Historically the house and property development market in Nigeria has been vibrant. But when the current world economic slump did start to take be patient in September 2008, it drained the confidence associated with your many investors and current market nose-dived along with the general financial crisis. But with the signs of economic recovery beginning to consider hold again, what prospects are there for an upsurge in the economic property area?
When industrial and commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that path for several years, but that the bottom of the trough are already reached this the only way out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and with laws of supply and demand in operation, the actual excess of supply far outstripping demand, kent ridge residence prices remained depressed.
However, explored 12 months has seen the warning signs of recovery occurring in industry 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 an illustration of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now constitutes a time to order. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. Always be forecast that trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is that this may well lead for industrial property boom in 2014/15. Not surprisingly with such a long gestation period moms and dads developments to go to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction can begin to are held.
All in all this has grown a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the next step is to speculate and invest.