Historically the house and property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump begin to take be patient in September 2008, it drained the confidence out of many investors and the market nose-dived considering the general economy. But with the signs of economic recovery beginning to take hold again, what prospects are there for a resurgence in the industrial 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 kent ridge hill residences showflat was likely to keep that means for several years, but as well that the bottom of the trough were definitily reached and that the sole method out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and together with laws of supply and demand in operation, with the 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 the commercial sector, by means of 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 this the current optimistic prospect. 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 opportunity for new letting agreements is booming and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. Usually forecast this specific trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead a good industrial property boom in 2014/15. Keep in mind with associated with long gestation period moms and dads developments to find final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all in the things end up being in place before actual construction can start to take place.
All within all this has grown a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as quick to medium term prospects are looking very positive, and this is the time to speculate and develop.