Historically the real estate development market in Nigeria has been vibrant. Even so the current world economic slump started to take wait and see in September 2008, it drained the confidence associated with your many investors and current market 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 upsurge in the commercial property store?
When industrial and commercial property prices reached a good solid low, it signaled 2 things. Firstly that the market was severely depressed and was likely remain in that means for several years, but as well that the bottom of the trough were definitily reached in which the only way out, was up. With all the market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and at a time laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, kent ridge hill residences tackled . 12 months has seen the signs and symptoms of recovery developing in sector 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 outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is an excellent time to order. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. Usually forecast that trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is that this may well lead for industrial property boom in 2014/15. Keep in mind with associated with long gestation period moms and dads developments arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction starting to are held.
All buying this has grown 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 it is now time to speculate and put.