Historically the home or property development market in Nigeria has been vibrant. Even so the current world economic slump did start to take wait and see in September 2008, it drained the confidence involving many investors and the market nose-dived considering the general financial crisis. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the economic property trade?
When industrial and commercial property prices reached a fabulous low, it signaled two things. Firstly that the market was severely depressed and was likely to keep that path for several years, but additionally that the bottom of the trough was in fact reached and that the greatest out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the symptoms of recovery as far back as in sector sector, and with property prices still artificially low, it has begun to stimulate demand, kent ridge hill residence 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 views. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now a great time purchase. As confidence returns to the economy, possibly new letting agreements is rising and properties are much more beginning to move, introducing a slow but steady rise in prices and rates. Always be forecast this kind of trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking situation.
Current thinking is this specific may well lead for industrial property boom in 2014/15. Certainly with such a long gestation period for first time developments to go to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction can begin to show up.
All within all this has grown to be 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 sow.