Historically the home or property development market in Nigeria has been vibrant. But when the current world economic slump begin to take restrain in September 2008, it drained the confidence involving many investors and marketplace nose-dived along with general economic climate. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for upset in the economic property market?
When industrial and commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely in which to stay that way for several years, but additionally that the bottom of the trough was in fact reached this the greatest out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs of recovery occurring in the commercial 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 an illustration of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, kent ridge hill residence and prices being as little as they are, now is an effective time to buy. As confidence returns to the economy, the chance of 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 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 until this may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with this long gestation period kids developments to arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction will start to reside.
All within all this has grown a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as of course to medium term prospects are looking very positive, and this is the time to speculate and develop.