Historically the property development market in Nigeria has been vibrant. Coverage the current world economic slump begin to take suppress in September 2008, it drained the confidence coming from many investors and the actual marketplace nose-dived along with general economic climate. But with the signs of economic recovery beginning to look at hold again, what prospects are there for becoming bitten in the commercial property store?
When industrial and commercial property prices reached your own low, it signaled a pair of things. Firstly that the market was severely depressed and was likely to stay that opportunity for several years, but as well that the bottom of the trough had been reached this the very best 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 at a time laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery occurring in sector sector, along with 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 probability. With economic forecasts being positive, albeit slow-moving, kent ridge hill residences and costs being as little as they are, now is a good 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, bringing about a slow but steady rise in prices and rates. It can be forecast that trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead a good industrial property boom in 2014/15. Not surprisingly with regarding long gestation period for new developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction start to show up.
All for all this will finally be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as of course to medium term prospects are looking very positive, and now is the time to speculate and sow.