Historically the property development market in Nigeria has been vibrant. But when the current world economic slump began to take suppress in September 2008, it drained the confidence associated with many investors and the market nose-dived along with the general economic climate. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the commercial property markets?
When industrial and commercial property prices reached your own low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that approach for several years, but that the bottom of the trough was in fact reached in which the very 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 at a time laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs of recovery as far back as in industrial municipal debt market 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 a good example of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now is an excellent time purchase. As confidence returns to the economy, the chance of new letting agreements is booming and properties are again beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast this kind of trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead to an industrial property boom in 2014/15. However with such a long gestation period kids developments to go to final fruition, kent ridge residence the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction starting to are held.
All in all this is now 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 the time has come to speculate and invest.