Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump did start to take restrain in September 2008, it drained the confidence associated with your many investors and the 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 becoming bitten in the economic property store?
When industrial and kent ridge hill residences showflat commercial property prices reached a good solid low, it signaled a pair of things. Firstly that the market was severely depressed and was likely in which to stay that way for several years, but also that the bottom of the trough ended up reached and that the greatest out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and that isn’t laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery going on 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now constitutes a time invest in. As confidence returns to the economy, the chance of new letting agreements is rising and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. Is usually forecast this specific trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this may well lead to an industrial property boom in 2014/15. Keep in mind with any long gestation period for new developments to find final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction start to are held.
All in all 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 this is the time to speculate and sow.