Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump started to take wait and see in September 2008, it drained the confidence involving many investors and current market nose-dived coupled with general economy. But with the signs of economic recovery beginning to take hold again, what prospects are there for an increase in the commercial property trade?
When industrial and commercial property prices reached your own low, it signaled a pair of things. Firstly that the market was severely depressed and was likely in which to stay that approach for several years, but additionally that the bottom of the trough had been reached in which the only way out, kent ridge hill residence was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and that isn’t laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs of recovery developing in industrial municipal debt market 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 one among the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now constitutes a time to buy. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. It can be forecast until this trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead to an industrial property boom in 2014/15. Not surprisingly with this long gestation period for first time developments to find final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction start to reside.
All for all this is already 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 now is the time to speculate and develop.