Historically the house and property development market in Nigeria has been vibrant. Even so, if the current world economic slump started take suppress in September 2008, it drained the confidence associated with many investors and the nose-dived along with the general finances. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an increase in the economic property store?
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 opportunity for several years, but as well that the bottom of the trough were definitily reached understanding that the very best out, was up. Is not market having stabilized at its new low, it meant that 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, the last 12 months has seen the indications of recovery as far back as in the commercial sector, along 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 one among the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now is an excellent time purchaser. As confidence returns to the economy, possibly new letting agreements is rising and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast that this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is until this may well lead to an industrial property boom in 2014/15. However with such a long gestation period for new developments to go to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction can start to show up.
All for all this is already 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 the next step is to speculate and kent ridge hill residences sow.