Historically the home or property development market in Nigeria has been vibrant. Even so the current world economic slump did start to take suppress in September 2008, it drained the confidence coming from many investors and marketplace nose-dived coupled with general economy. But with the signs of economic recovery beginning to take hold again, what prospects are there for a resurgence in the commercial property store?
When industrial and commercial property prices reached another low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to keep that approach for several years, but also that the bottom of the trough was in fact reached of which 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 pouring in had stopped, and at a time laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery taking place in sector 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 a good example of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now a great time to buy. As confidence returns to the economy, the potential for new letting agreements is booming and properties are again beginning to move, creating a slow but steady rise in prices and rates. It can be forecast that trend continues slowly but surely, kent ridge hill residence depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead to an industrial property boom in 2014/15. Certainly with any long gestation period for new developments to come to final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance - all things must be in place before actual construction will start to reside.
All buying this has grown to 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 this is the time to speculate and invest.