Historically the property development market in Nigeria has been vibrant. Even so the current world economic slump began to take restrain in September 2008, it drained the confidence associated with your many investors and the actual marketplace nose-dived considering the general financial crisis. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the commercial property area?
When industrial and commercial property prices reached another low, it signaled a pair of things. Firstly that the market was severely depressed and was likely keep that path for several years, but additionally that the bottom of the trough was in fact reached understanding that the very best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and with the laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the warning signs of recovery going on in industrial municipal debt market sector, and with 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 an illustration of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being as low as 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 much more beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast until this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. However with any long gestation period moms and kent ridge hill residences showflat dads developments to go to final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction will start to show up.
All in all this has grown a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as simple to medium term prospects are looking very positive, and this is the time to speculate and make an investment.