Historically the property development market in Nigeria has been vibrant. But when the current world economic slump did start to take suppress in September 2008, it drained the confidence out of many investors and marketplace nose-dived along with the general economy. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the commercial property trade?
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 to keep that opportunity for several years, kent ridge hill residences showflat but as well that the bottom of the trough had been reached and that the very best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and 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 and symptoms of recovery going on in the commercial sector, and 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 an illustration of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is an effective time purchaser. As confidence returns to the economy, possibly new letting agreements is booming and properties are again beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast this specific trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is until this may well lead for industrial property boom in 2014/15. Not surprisingly with associated with long gestation period moms and dads developments to go to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction will start to are held.
All within all this is now a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as of course to medium term prospects are looking very positive, and it is now time to speculate and invest.