Historically the real estate development market in Nigeria has been vibrant. Even so the current world economic slump began to take suppress in September 2008, it drained the confidence involving many investors and the nose-dived plus the general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an increase in the industrial property markets?
When industrial and commercial property prices reached a new low, it signaled 2 things. Firstly that the market was severely depressed and was likely keep that means for several years, but additionally that the bottom of the trough was in fact reached and 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 being pouring in had stopped, and kent ridge hill residences showflat at a time 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 signs and symptoms of recovery occurring in sector sector, by means of 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 the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now is an excellent time invest in. As confidence returns to the economy, possibly new letting agreements is rising and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. It is forecast that this trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking situation.
Current thinking is this specific may well lead to an industrial property boom in 2014/15. Certainly with associated with long gestation period for first time developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction start to be fulfilled.
All in all this is already a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and now is the time to speculate and put.