Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump begin to take suppress in September 2008, it drained the confidence coming from many investors and the nose-dived considering the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the economic property market?
When industrial and commercial property prices reached a good solid low, it signaled a couple of things. Firstly that the market was severely depressed and kent ridge residence was likely to keep that opportunity for several years, but also that the bottom of the trough ended up reached of which the only way out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and at a time laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs of recovery occurring in industry 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 views. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an excellent time purchaser. As confidence returns to the economy, the chance of new letting agreements is booming and properties are again beginning to move, creating a slow but steady rise in prices and rates. Usually forecast that this 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 specific may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with associated with long gestation period for new developments to go to final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all things should be in place before actual construction start to are held.
All in many this is already 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 this is the time to speculate and make an investment.