Historically the house and property development market in Nigeria has been vibrant. Coverage the current world economic slump started to take be patient in September 2008, it drained the confidence associated with many investors and current market nose-dived considering the general finances. 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 remain in that means for kent ridge residence several years, but as well that the bottom of the trough was in fact reached understanding that the only way out, was up. Together with 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, more than excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the warning signs of recovery developing in industry sector, other than 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 the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is an effective time purchaser. As confidence returns to the economy, possibly new letting agreements is booming and properties are much more beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast this kind of trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead to an industrial property boom in 2014/15. Keep in mind with such a long gestation period a great deal of developments to come to final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things end up being in place before actual construction can start to take place.
All in all this is now 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 now is the time to speculate and invest.