Historically the property development market in Nigeria has been vibrant. Even so, if the current world economic slump began to take suppress in September 2008, it drained the confidence coming from many investors and marketplace nose-dived along with the general economic climate. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for a resurgence in the industrial property store?
When industrial and commercial property prices reached your own low, it signaled 2 things. Firstly that the market was severely depressed and was likely to keep that means for several years, but also that the bottom of the trough are already reached understanding that the best 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, kent ridge hill residence and with the laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the symptoms of recovery occurring in the commercial sector, other than 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 this the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now is an effective time invest in. As confidence returns to the economy, possibly new letting agreements is rising and properties are again beginning to move, introducing a slow but steady rise in prices and rates. It is forecast this kind of trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is that this may well lead a good industrial property boom in 2014/15. Certainly with associated with long gestation period for new developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction start to be fulfilled.
All in all this will finally be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as quick to medium term prospects are looking very positive, and the time has come to speculate and develop.