Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump did start to take suppress in September 2008, it drained the confidence out of many investors and current market nose-dived plus the general finances. But with the signs of economic recovery beginning to consider hold again, what prospects are there for upset in the industrial property store?
When industrial and commercial property prices reached a new low, it signaled a couple of things. Firstly that the market was severely depressed and kent ridge hill residences price was likely remain in that approach for several years, but that the bottom of the trough are already reached of which the only way out, was up. Together with 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, while excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the symptoms of recovery going on in sector 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 a good example of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now a great time to order. As confidence returns to the economy, the potential for new letting agreements is booming and properties are again beginning to move, introducing a slow but steady rise in prices and rates. It can be forecast that trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is this may well lead for industrial property boom in 2014/15. Not surprisingly with regarding long gestation period for first time developments to go to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction can begin to are held.
All buying this is already a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and it is now time to speculate and develop.