Historically the exact property development market in Nigeria has been vibrant. Coverage the current world economic slump started take restrain in September 2008, it drained the confidence associated with many investors and the market nose-dived coupled with general economic climate. But with the signs of economic recovery beginning to take hold again, what prospects are there for an upsurge in the industrial property store?
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 additionally that the bottom of the trough ended up 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 actually pouring in had stopped, and that isn’t laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the warning signs of recovery taking place in industrial municipal debt market 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 an illustration of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now is a good time to buy. As confidence returns to the economy, the chance of new letting agreements is rising and kent ridge residence properties are once again beginning to move, leading to a slow but steady rise in prices and rates. It can be forecast this kind of trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with associated with long gestation period for new developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all in the things end up being in place before actual construction will start to show up.
All within all this is already a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the next step is to speculate and develop.