Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump begin to take wait and see in September 2008, kent ridge hill residences it drained the confidence involving many investors and the actual marketplace nose-dived along with general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an increase in the commercial property area?
When industrial and commercial property prices reached your own low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that approach for several years, but that the bottom of the trough were definitily reached and that the very best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that had been 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, explored 12 months has seen the indications of recovery developing in the commercial sector, together with 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 on life. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now a great time purchase. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are once again beginning to move, creating a slow but steady rise in prices and rates. It is forecast this specific trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is this specific may well lead to an industrial property boom in 2014/15. Keep in mind with such a long gestation period kids 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 within all this will finally be 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 next step is to speculate and sow.