Historically the property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take be patient in September 2008, it drained the confidence out of many investors and marketplace nose-dived along with general financial crisis. But with the signs of economic recovery beginning to consider hold again, what prospects are there for an upsurge in the commercial property market?
When industrial and kent ridge hill residence commercial property prices reached a fabulous low, it signaled a pair of things. Firstly that the market was severely depressed and was likely keep that means for several years, but as well that the bottom of the trough had been reached in which the best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that had been 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, tackled . 12 months has seen the signs and symptoms of recovery taking place in sector sector, along with 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 an illustration of this the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is an excellent time purchaser. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are had been beginning to move, leading to a slow but steady rise in prices and rates. It can be forecast that this trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking situation.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with any long gestation period for new developments to find final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all things should be in place before actual construction can start to reside.
All in many this is already a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as of course to medium term prospects are looking very positive, and this is the time to speculate and develop.