Historically the home or property development market in Nigeria has been vibrant. But when the current world economic slump begin to take restrain in September 2008, it drained the confidence coming from many investors and marketplace nose-dived along with general economic situation. But with the signs of economic recovery beginning to look at hold again, what prospects are there for becoming bitten in the commercial property trade?
When industrial and commercial property prices reached a new low, it signaled a couple of things. Firstly that the market was severely depressed and was likely in which to stay that approach for several years, but also that the bottom of the trough ended up reached of which the greatest out, was up. Together with market having stabilized at its new low, it meant that 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, you will develop 12 months has seen the signs of recovery taking place in industrial municipal debt market 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 this the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now a great time purchaser. As confidence returns to the economy, the chance of new letting agreements is rising and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast until this trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this may well lead for industrial property boom in 2014/15. Of course with regarding long gestation period for first time developments to come to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction start to take place.
All in all this will finally be a very positive time for kent ridge residence property development. Industrial property investors have every reason to cautiously optimistic, as of course to medium term prospects are looking very positive, and now is the time to speculate and put.