Historically the property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump began to take hold back in September 2008, it drained the confidence involving many investors and the nose-dived considering the general financial crisis. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an upsurge in the industrial property market?
When industrial and commercial property prices reached your own low, it signaled a couple of things. Firstly that the market was severely depressed and was likely keep that way for several years, but as well that the bottom of the trough was in fact reached in which the greatest out, was up. With all the market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and together with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the symptoms of recovery going on 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 probability. With economic forecasts being positive, albeit slow-moving, and kent ridge hill residences price costs being at only they are, now is an effective time invest in. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are had been beginning to move, leading to a slow but steady rise in prices and rates. Always be forecast until this trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking point.
Current thinking is this kind of may well lead with regard to an industrial property boom in 2014/15. Of course with regarding long gestation period for new developments to arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction can begin to take place.
All in many this is already a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as of course to medium term prospects are looking very positive, and this is the time to speculate and develop.