Historically the real estate development market in Nigeria has been vibrant. Coverage the current world economic slump started take restrain in September 2008, it drained the confidence involving many investors and marketplace nose-dived along with general finances. But with the signs of economic recovery beginning to consider hold again, what prospects are there for becoming bitten in the industrial property trade?
When industrial and commercial property prices reached another low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to stay that way for several years, but that the bottom of the trough had been reached this the greatest out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and that isn’t laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs and symptoms of recovery occurring in sector sector, and with 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 an illustration of this the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now a great time to order. As confidence returns to the economy, the chance of new letting agreements is booming and properties are once again beginning to move, creating a slow but steady rise in prices and rates. It is forecast that this trend will continue slowly but surely, kent ridge hill residences price depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Of course with this long gestation period kids developments to come to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all things should be in place before actual construction will start to reside.
All within all this will finally be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and sow.