Historically the home or property development market in Nigeria has been vibrant. But when the current world economic slump started to take be patient in September 2008, it drained the confidence coming from many investors and the actual marketplace nose-dived considering the general economic climate. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the industrial property store?
When industrial and commercial property prices reached another low, it signaled two things. Firstly that the market was severely depressed and was likely in which to stay that opportunity for several years, but as well that the bottom of the trough ended up reached in which the greatest out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and that isn’t laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the symptoms of recovery taking place in the commercial sector, by means of 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 one among the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and kent ridge hill residences showflat costs being as little as they are, now is an excellent time to buy. As confidence returns to the economy, possibly new letting agreements is booming and properties are again beginning to move, creating a slow but steady rise in prices and rates. Always be forecast that this trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is that this may well lead a good industrial property boom in 2014/15. Keep in mind with this long gestation period for new developments to arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction can start to show up.
All buying this is already a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as quick to medium term prospects are looking very positive, and this is the time to speculate and put.