Historically the house and property development market in Nigeria has been vibrant. Coverage the current world economic slump begin to take wait and see in September 2008, it drained the confidence out of many investors and current market nose-dived considering the general finances. But with the signs of economic recovery beginning to look at hold again, what prospects are there for upset in the commercial property store?
When industrial and commercial property prices reached another low, it signaled two things. Firstly that the market was severely depressed and was likely keep that way for several years, but as well that the bottom of the trough was in fact reached of which the greatest out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and together with laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs of recovery developing in the commercial sector, and 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 an illustration of this the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, kent ridge hill residence now is a good time to order. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are had been beginning to move, creating a slow but steady rise in prices and rates. Is usually forecast that this trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking situation.
Current thinking is this specific may well lead to an industrial property boom in 2014/15. However with regarding long gestation period moms and dads developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction start to are held.
All within all this will finally be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the time has come to speculate and sow.