Historically the exact property development market in Nigeria has been vibrant. Even so the current world economic slump began to take restrain in September 2008, it drained the confidence associated with your many investors and current market nose-dived considering the general finances. But with the signs of economic recovery beginning to be able to hold again, kent ridge hill residence what prospects are there for a resurgence in the commercial property store?
When industrial and commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that approach for several years, but additionally that the bottom of the trough ended up reached understanding that the best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery developing in sector 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 an illustration of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now is an effective time purchaser. As confidence returns to the economy, the potential for new letting agreements is rising and properties are much more beginning to move, introducing a slow but steady rise in prices and rates. Usually forecast this kind of trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is until this may well lead to an industrial property boom in 2014/15. Not surprisingly with associated with long gestation period for new developments to go to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction start to are held.
All within all this is already a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as the short to medium term prospects are looking very positive, and now is the time to speculate and sow.