Historically the real estate 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 coming from many investors and the nose-dived along with the general economic situation. But with the signs of economic recovery beginning to take hold again, what prospects are there for upset in the economic property market?
When industrial and commercial property prices reached a good solid low, kent ridge hill residences showflat it signaled a couple of 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 are already reached understanding that the best out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery as far back as in industrial municipal debt market sector, along with 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 an illustration of this the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now a great time invest in. As confidence returns to the economy, the potential for new letting agreements is booming and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. Usually forecast that trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead a good industrial property boom in 2014/15. However with regarding long gestation period for first time developments to find final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction will start to be fulfilled.
All in many this has grown to be a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as of course to medium term prospects are looking very positive, and now is the time to speculate and make an investment.