Historically the property development market in Nigeria has been vibrant. But when the current world economic slump did start to take restrain in September 2008, it drained the confidence out of many investors and the actual marketplace nose-dived along with the general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an increase in the commercial property market?
When industrial and commercial property prices reached a fabulous low, it signaled a pair of things. Firstly that the market was severely depressed and was likely to stay that approach for several years, but as well that the bottom of the trough are already reached and that the best out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and with the laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery as far back as in industrial municipal debt market sector, along 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now is a good time to buy. As confidence returns to the economy, the chance of new letting agreements is booming and properties are much more beginning to move, leading to a slow but steady rise in prices and rates. It can be forecast this specific trend continue slowly but surely, kent ridge hill residences depleting the supply surplus that 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. Of course with regarding long gestation period a great deal of developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction will start to are held.
All for all this is already a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as of course to medium term prospects are looking very positive, and now is the time to speculate and make an investment.