Historically the exact property development market in Nigeria has been vibrant. Even so the current world economic slump started to take suppress in September 2008, it drained the confidence coming from many investors and current market nose-dived coupled with general economic situation. But with the signs of economic recovery beginning to take hold again, what prospects are there for an upsurge in the economic property store?
When industrial and commercial property prices reached your own low, it signaled 2 things. Firstly that the market was severely depressed and was likely to stay that way for several years, but additionally that the bottom of the trough was in fact reached of which the best out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs of recovery as far back as in the commercial sector, by means of property prices still artificially low, 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 an illustration of this the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and kent ridge hill residences costs being under they are, now is an effective time to buy. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are had been beginning to move, introducing a slow but steady rise in prices and rates. Is usually forecast that trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this may well lead for industrial property boom in 2014/15. Of course with such a long gestation period for first time developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction start to are held.
All buying this will finally be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as the short to medium term prospects are looking very positive, and now is the time to speculate and put.