Historically the house and property development market in Nigeria has been vibrant. But when the current world economic slump begin to take be patient in September 2008, it drained the confidence out of many investors and the actual marketplace nose-dived along with general economic climate. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an increase in the commercial property trade?
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 additionally that the bottom of the trough were definitily reached this the sole method out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and kent ridge residence with laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the symptoms of recovery occurring in industrial municipal debt market sector, other than 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 outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now constitutes a time purchaser. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are again beginning to move, creating a slow but steady rise in prices and rates. Always be forecast until this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this may well lead for industrial property boom in 2014/15. Of course with regarding long gestation period for first time developments to find final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all 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 to cautiously optimistic, as of course to medium term prospects are looking very positive, and the next step is to speculate and put.