Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump did start to take wait and see in September 2008, it drained the confidence associated with your many investors and kent ridge residence the market nose-dived plus the general economic climate. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the commercial property trade?
When industrial and commercial property prices reached a new low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that approach for several years, but that the bottom of the trough were definitily reached understanding 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 pouring in had stopped, and with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery taking place in industry sector, by means of property prices still artificially low, 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 one among the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now is an effective time purchase. As confidence returns to the economy, the potential for new letting agreements is booming and properties are again beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast that trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is until this may well lead with regard to an industrial property boom in 2014/15. Keep in mind with such a long gestation period for new developments to arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance - all of those things should be in place before actual construction will start to take place.
All in many this has grown a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as quick to medium term prospects are looking very positive, and now is the time to speculate and make an investment.