Historically the exact property development market in Nigeria has been vibrant. But when the current world economic slump did start to take wait and kent ridge residence see in September 2008, it drained the confidence coming from many investors and current market nose-dived plus the general financial crisis. But with the signs of economic recovery beginning to take hold again, what prospects are there for a resurgence in the commercial property trade?
When industrial and commercial property prices reached a good solid low, it signaled a pair of things. Firstly that the market was severely depressed and was likely in which to stay that way for several years, but also that the bottom of the trough ended up reached this the greatest out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and together with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs and symptoms of recovery occurring in the commercial sector, along 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 a good example of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is a good time to order. As confidence returns to the economy, possibly new letting agreements is booming and properties are much more beginning to move, bringing about a slow but steady rise in prices and rates. Usually forecast this kind of trend continues 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 for industrial property boom in 2014/15. Of course with regarding long gestation period for new developments to find final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction start to show up.
All in all this has grown a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as quick to medium term prospects are looking very positive, and now is the time to speculate and sow.