Historically the exact property development market in Nigeria has been vibrant. Even so the current world economic slump started take suppress in September 2008, it drained the confidence associated with your many investors and the market nose-dived considering the general economy. But with the signs of economic recovery beginning to consider hold again, what prospects are there for a resurgence in the commercial property trade?
When industrial and commercial property prices reached a fabulous low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to stay that path for several years, but as well that the bottom of the trough are already reached understanding that 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 pouring in had stopped, and at a time laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs of recovery going on 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 a good example 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 purchase. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are had been beginning to move, leading to 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 situation.
Current thinking is this kind of may well lead with regard to an industrial property boom in 2014/15. However with this long gestation period for first time developments to arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction can start to be fulfilled.
All buying this has grown a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and kent ridge hill residences develop.