Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump did start to take suppress in September 2008, it drained the confidence associated with your many investors and marketplace nose-dived coupled with general financial crisis. But with the signs of economic recovery beginning to consider hold again, what prospects are there for upset in the economic 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 remain in that approach for several years, but that the bottom of the trough are already reached and that the very best out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and together with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs of recovery as far back as in industry sector, by means of property prices still artificially low, kent ridge residence 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 a good example of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is an excellent time to order. As confidence returns to the economy, the chance of new letting agreements is booming and properties are had been beginning to move, creating a slow but steady rise in prices and rates. It is forecast that trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking situation.
Current thinking is until this may well lead to an industrial property boom in 2014/15. Of course with associated with long gestation period for first time developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction starting to are held.
All in many this is already a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and invest.