Historically the exact property development market in Nigeria has been vibrant. But when the current world economic slump did start to take wait and see in September 2008, it drained the confidence involving many investors and marketplace nose-dived along with the general financial crisis. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the industrial property market?
When industrial and kent ridge hill residences showflat commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely remain in that way for several years, but that the bottom of the trough were definitily reached understanding that the only way out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and with laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the symptoms of recovery taking place in industrial municipal debt market sector, other than 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now constitutes a time purchase. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Is usually forecast that trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking situation.
Current thinking is that this may well lead for industrial property boom in 2014/15. Of course with regarding long gestation period for new developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction can begin to are held.
All in many this is now a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and it is now time to speculate and sow.