Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started take restrain in September 2008, it drained the confidence involving many investors and marketplace nose-dived coupled with general finances. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for upset in the industrial property market?
When industrial and commercial property prices reached another low, it signaled two things. Firstly that the market was severely depressed and was likely keep that approach for several years, kent ridge hill residences price but as well that the bottom of the trough ended up reached this the best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and together with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the signs of recovery going on in industry sector, together with 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 prospect. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now a great time invest in. As confidence returns to the economy, the potential for new letting agreements is booming and properties are had been beginning to move, creating a slow but steady rise in prices and rates. Is usually forecast this kind of trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this may well lead a good industrial property boom in 2014/15. Certainly with associated with long gestation period moms and dads developments to go to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance - all of the listed things should be in place before actual construction can begin to reside.
All for all this is now a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as simple to medium term prospects are looking very positive, and this is the time to speculate and invest.