Historically the real estate development market in Nigeria has been vibrant. Coverage the current world economic slump begin to take suppress in September 2008, it drained the confidence involving many investors and the actual 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 kent ridge hill residence an upsurge in the commercial property markets?
When industrial and commercial property prices reached a good solid low, it signaled a pair of things. Firstly that the market was severely depressed and was likely keep that path for several years, but also that the bottom of the trough was in fact reached understanding that the sole method out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and with 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 occurring in sector sector, by means of 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 this the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now is an excellent time purchaser. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Always be forecast that this trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. Of course with any long gestation period for first time developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction can begin to reside.
All within all this will finally be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as simple to medium term prospects are looking very positive, and the next step is to speculate and sow.