Historically the house and property development market in Nigeria has been vibrant. Even so, if the current world economic slump did start to take suppress in September 2008, kent ridge residence it drained the confidence involving many investors and marketplace nose-dived considering the general economic situation. But with the signs of economic recovery beginning to consider hold again, what prospects are there for a resurgence in the commercial property markets?
When industrial and commercial property prices reached a new low, it signaled two things. Firstly that the market was severely depressed and was likely to stay that way for several years, but as well that the bottom of the trough had been reached understanding that the best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and with the laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the indications of recovery as far back as in industry 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 certainly one of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now is a good time to order. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are much more beginning to move, introducing a slow but steady rise in prices and rates. Usually forecast this kind of trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead a good industrial property boom in 2014/15. Not surprisingly with associated with long gestation period a great deal of developments to go to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all in the things end up being 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 the short to medium term prospects are looking very positive, and now is the time to speculate and sow.