Historically the real estate development market in Nigeria has been vibrant. But when the current world economic slump began to take hold back in September 2008, it drained the confidence involving many investors and the actual marketplace nose-dived along with the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the economic property markets?
When industrial and commercial property prices reached a new low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that way for several years, but as well that the bottom of the trough was in fact reached this the best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and with laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the symptoms of recovery going on in industrial municipal debt market 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 a good example of the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now constitutes a time purchase. As confidence returns to the economy, the potential for new letting agreements is rising and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. It can be forecast this specific trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead a good 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 things must be in place before actual construction can start to be fulfilled.
All for kent ridge hill residence all this has grown a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as the short to medium term prospects are looking very positive, and the time has come to speculate and put.