Historically the house and property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take wait and see in September 2008, it drained the confidence coming from many investors and the market nose-dived along with general economic situation. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an increase in the economic property trade?
When industrial and commercial property prices reached a new low, it signaled two 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 had been reached in which the best out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and that isn’t laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the signs of recovery going on in sector sector, by means of 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 this the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an excellent time invest in. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, bringing about a slow but steady rise in prices and rates. It is forecast until this trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking situation.
Current thinking is this specific may well lead to an industrial property boom in 2014/15. Keep in mind with associated with long gestation period moms and dads developments to find final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction start to reside.
All in many this has grown a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as simple to medium term prospects are looking very positive, kent ridge residence and it is now time to speculate and sow.