Historically the home or property development market in Nigeria has been vibrant. But when the current world economic slump begin to take hold back in September 2008, it drained the confidence out of many investors and the actual marketplace nose-dived plus the general financial crisis. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the commercial property store?
When industrial and commercial property prices reached a fabulous low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that opportunity for several years, but as well that the bottom of the trough were definitily reached and that the only way out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and with laws of supply and demand in operation, kent ridge hill residences showflat that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs of recovery going on in sector sector, by means of property prices still artificially low, this 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 prospect. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now is an effective time to buy. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are once again beginning to move, 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 that eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Keep in mind with associated with long gestation period kids developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of these things should 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 get cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and sow.