Historically the property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump did start to take suppress in September 2008, it drained the confidence coming from many investors and the nose-dived coupled with general economic climate. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the industrial property area?
When industrial and kent ridge residence commercial property prices reached a good solid low, it signaled two things. Firstly that the market was severely depressed and was likely in which to stay that path for several years, but that the bottom of the trough ended up reached understanding that the sole method out, was up. With all 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, while excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the warning signs of recovery developing in sector 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now is an excellent time purchase. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are again beginning to move, resulting in a slow but steady rise in prices and rates. Always be forecast that trend continues 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. Certainly with regarding long gestation period moms and dads developments to go to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction will start to reside.
All in all this is now a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as the short to medium term prospects are looking very positive, and it is now time to speculate and make an investment.