Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump started take wait and see in September 2008, it drained the confidence out of many investors and the actual marketplace nose-dived considering the general economy. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an upsurge in the industrial property market?
When industrial and commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely keep that opportunity for several years, but as well that the bottom of the trough are already reached and that 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, while excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs of recovery occurring in industrial municipal debt market 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 views. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is an effective time to order. As confidence returns to the economy, the chance of new letting agreements is booming and properties are much more beginning to move, leading to a slow but steady rise in prices and rates. Usually forecast that this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking situation.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. Keep in mind with associated with long gestation period for first time developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, kent ridge hill residences showflat surveys, finance – all in the things end up being in place before actual construction starting to show up.
All in many this will finally be a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and it is now time to speculate and make an investment.