Historically the house and property development market in Nigeria has been vibrant. Even so, if the current world economic slump begin to take restrain in September 2008, it drained the confidence coming from many investors and current market nose-dived along with general economic climate. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the commercial property store?
When industrial and commercial property prices reached another low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that way for several years, but additionally that the bottom of the trough was in fact reached of which the only way out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and together with laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the indications of recovery taking place in the commercial 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, kent ridge hill residence now is an excellent time purchaser. As confidence returns to the economy, the potential for new letting agreements is rising 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 continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is that this may well lead to an industrial property boom in 2014/15. Certainly with such a long gestation period moms and dads developments to come to final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction can begin to show up.
All in all this is already a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as simple to medium term prospects are looking very positive, and the next step is to speculate and sow.