Historically the home or property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started to take hold back in September 2008, it drained the confidence involving many investors and current market nose-dived along with the general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the economic property area?
When industrial and commercial property prices reached another low, it signaled two things. Firstly that the market was severely depressed and was likely remain in that path for several years, but that the bottom of the trough are already reached understanding that the sole method out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and that isn’t laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs of recovery occurring 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 an illustration of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is a good time invest in. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. Usually forecast this kind of trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with any long gestation period for first time developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, kent ridge hill residences price finance – all of these things should be in place before actual construction can start to take place.
All buying this is now a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and make an investment.