Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump started to take be patient in September 2008, it drained the confidence associated with many investors and the actual marketplace nose-dived considering the general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the industrial property markets?
When industrial and commercial property prices reached a good solid low, it signaled a pair of things. Firstly that the market was severely depressed and kent ridge hill residences was likely to keep that approach for several years, but as well that the bottom of the trough ended up reached in which the sole method out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and that isn’t 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 warning signs of recovery taking place in industry sector, other than 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 views. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now a great time invest in. As confidence returns to the economy, possibly new letting agreements is booming and properties are had been beginning to move, introducing a slow but steady rise in prices and rates. Is usually forecast that trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is that this may well lead a good industrial property boom in 2014/15. Of course with regarding long gestation period for new developments arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction starting to take place.
All in many this is already a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as quick to medium term prospects are looking very positive, and the time has come to speculate and make an investment.