Historically the property development market in Nigeria has been vibrant. Coverage the current world economic slump started to take wait and see in September 2008, it drained the confidence coming from many investors and kent ridge hill residences price marketplace nose-dived along with the general economic situation. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the economic property market?
When industrial and commercial property prices reached another low, it signaled a pair of things. Firstly that the market was severely depressed and was likely keep that opportunity for several years, but as well that the bottom of the trough were definitily reached understanding that the greatest out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and at a time laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs and symptoms of recovery developing in industry sector, along with 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 a good example of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now a great time invest in. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, bringing about a slow but steady rise in prices and rates. It can be forecast that trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is until this may well lead a good industrial property boom in 2014/15. Keep in mind with this long gestation period kids developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction will start to be fulfilled.
All in many this has grown a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as simple to medium term prospects are looking very positive, and now is the time to speculate and make an investment.