Historically the home or property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump begin to take restrain in September 2008, it drained the confidence coming from many investors and the market nose-dived plus the general finances. But with the signs of economic recovery beginning to take hold again, what prospects are there for upset in the commercial property store?
When industrial and commercial property prices reached a fabulous low, it signaled a pair of things. Firstly that the market was severely depressed and was likely remain in that means for kent ridge hill residences price several years, but additionally that the bottom of the trough had been reached this the best out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and together with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the indications of recovery taking place in the commercial 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is an excellent time to order. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. It is forecast until this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is that this may well lead with regard to an industrial property boom in 2014/15. Keep in mind with regarding long gestation period for first time developments to find final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction start to be fulfilled.
All within all this is already a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and put.