Historically the real estate 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 marketplace nose-dived considering the general economic climate. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for upset in the economic property market?
When industrial and commercial property prices reached a fabulous low, it signaled a couple of things. Firstly that the market was severely depressed and was likely in which to stay that opportunity for several years, but also that the bottom of the trough were definitily reached in which the very best out, was up. While using market having stabilized at its new low, kent ridge hill residences showflat it meant how the glut of distressed properties that were being 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, given out 12 months has seen the signs of recovery as far back as in industry sector, other than 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 one among the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now is an effective time invest in. As confidence returns to the economy, the potential for new letting agreements is booming and properties are much more beginning to move, introducing a slow but steady rise in prices and rates. It is forecast until this trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead for industrial property boom in 2014/15. Of course with this long gestation period a great deal of developments to go to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction can start to reside.
All buying this is now a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as simple to medium term prospects are looking very positive, and the time has come to speculate and make an investment.