Historically the exact property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take suppress in September 2008, it drained the confidence associated with many investors and the nose-dived along with the general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the economic property market?
When industrial and commercial property prices reached a good solid low, it signaled 2 things. Firstly that the market was severely depressed and was likely keep that path for several years, but additionally that the bottom of the trough had been reached this the greatest out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and kent ridge hill residences price that isn’t laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery as far back as in the commercial sector, by means of 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 outlook. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is a good time invest in. As confidence returns to the economy, the chance of new letting agreements is rising and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. Always be forecast that this trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking point.
Current thinking is that this may well lead for industrial property boom in 2014/15. Keep in mind with regarding long gestation period moms and dads developments to come to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction can start to show up.
All in all this has grown 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 it is now time to speculate and invest.