Historically the property development market in Nigeria has been vibrant. Even so the current world economic slump started to take restrain in September 2008, it drained the confidence coming from many investors and the actual marketplace nose-dived considering the general finances. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for a resurgence in the industrial property market?
When industrial and commercial property prices reached another low, it signaled a couple 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 of which the best out, was up. Is not market having stabilized at its new low, it meant that 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, you will develop 12 months has seen the indications of recovery going on in industrial municipal debt market sector, by means of 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now is an effective time to order. As confidence returns to the economy, the chance of new letting agreements is rising and properties are once again beginning to move, kent ridge hill residences showflat creating a slow but steady rise in prices and rates. It is forecast this specific trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this may well lead a good industrial property boom in 2014/15. However with any long gestation period for new developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction will start to are held.
All in many this is now a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as the short to medium term prospects are looking very positive, and it is now time to speculate and put.