Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started to take suppress in September 2008, it drained the confidence involving many investors and the actual marketplace nose-dived coupled with general economy. But with the signs of economic recovery beginning to look at hold again, what prospects are there for upset in the commercial property markets?
When industrial and commercial property prices reached your own low, it signaled two things. Firstly that the market was severely depressed and was likely keep that path for several years, but also that the bottom of the trough are already reached understanding that the sole method out, kent ridge hill residences price was up. With all the 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, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the warning signs of recovery developing in industrial municipal debt market sector, along 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 certainly one of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now a great time to order. As confidence returns to the economy, the potential for new letting agreements is rising and properties are much more beginning to move, creating a slow but steady rise in prices and rates. Usually forecast that this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this kind of may well lead with regard to an industrial property boom in 2014/15. Certainly with regarding long gestation period for new developments to find final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction will start to are held.
All for all this is now a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as quick to medium term prospects are looking very positive, and the next step is to speculate and develop.