Historically the 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 coupled with general economic situation. But with the signs of economic recovery beginning to take hold again, what prospects are there for an upsurge in the economic property area?
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 in which to stay that way for several years, but also that the bottom of the trough are already reached understanding that the only way out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and at a time laws of supply and demand in operation, kent ridge hill residences showflat the actual 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, other than 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 one among the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is a good time invest in. As confidence returns to the economy, the potential for new letting agreements is booming and properties are again beginning to move, creating a slow but steady rise in prices and rates. It is forecast this specific trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with associated with long gestation period moms and dads developments to go to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction can begin to take place.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as simple to medium term prospects are looking very positive, and it is now time to speculate and put.