Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump began to take suppress in September 2008, it drained the confidence out of many investors and marketplace nose-dived along with general financial crisis. But with the signs of economic recovery beginning to take hold again, what prospects are there for upset in the industrial property market?
When industrial and kent ridge hill residences price commercial property prices reached a fabulous low, it signaled to show your internet. Firstly that the market was severely depressed and was likely keep that approach for several years, but additionally that the bottom of the trough was in fact reached in which the very best out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and 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 warning signs of recovery taking place in industry 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. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is an excellent time to order. As confidence returns to the economy, possibly new letting agreements is booming and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Usually forecast until this trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is until this may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with any long gestation period for first time developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction starting to are held.
All buying this has grown a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and make an investment.