Historically the house and property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take hold back in September 2008, it drained the confidence involving many investors and the actual marketplace nose-dived considering the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the industrial property store?
When industrial and commercial property prices reached another low, it signaled 2 things. Firstly that the market was severely depressed and was likely keep that approach for several years, but additionally that the bottom of the trough were definitily reached this the sole method out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and with the laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery as far back as 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 a good example of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is an effective time invest in. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. Usually forecast this specific trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead for industrial property boom in 2014/15. However with regarding long gestation period for new developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all in the things should be in place before actual construction can begin to take place.
All in all this has grown a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as the short to medium term prospects are looking very positive, and kent ridge hill residences showflat this is the time to speculate and make an investment.