Historically the real estate development market in Nigeria has been vibrant. Even so, if the current world economic slump did start to take hold back in September 2008, it drained the confidence associated with many investors and current market nose-dived considering the general financial crisis. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an increase in the economic property trade?
When industrial and commercial property prices reached a good solid 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 also that the bottom of the trough was in fact reached this 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 actually pouring in had stopped, and kent ridge hill residences price together with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the 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 prospect. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is an excellent time to buy. As confidence returns to the economy, possibly new letting agreements is rising and properties are much more beginning to move, creating a slow but steady rise in prices and rates. Is usually forecast this specific trend 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 for industrial property boom in 2014/15. Keep in mind with this long gestation period for new developments arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction can begin to show up.
All for all this is now a very positive time for property development. Industrial property investors have every reason become 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.