Historically the property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump did start to take restrain in September 2008, it drained the confidence coming from many investors and marketplace nose-dived coupled with general finances. But with the signs of economic recovery beginning to take hold again, what prospects are there for an increase in the economic property store?
When industrial and commercial property prices reached a new low, 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 additionally that the bottom of the trough was in fact reached of which the greatest 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 kent ridge hill residences showflat at a time 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 occurring in sector sector, and with 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now is a good time to order. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. It can be forecast that trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is until this may well lead with regard to an industrial property boom in 2014/15. However with regarding long gestation period for first time developments to go to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction will start to show up.
All for all this is now a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the time has come to speculate and put.