Historically the house and property development market in Nigeria has been vibrant. Even so, if the current world economic slump begin to take suppress in September 2008, it drained the confidence involving many investors and current market nose-dived plus the general economic situation. But with the signs of economic recovery beginning to take hold again, what prospects are there for an upsurge in the economic property markets?
When industrial and commercial property prices reached your own low, it signaled a couple of things. Firstly that the market was severely depressed and was likely remain in that means for several years, but additionally that the bottom of the trough ended up reached in which the sole method out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and with the laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the indications of recovery taking place in industry sector, together 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, kent ridge residence and costs being as low as they are, now is a good time to buy. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Always be forecast that trend continues 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 with regard to an industrial property boom in 2014/15. However with such a long gestation period kids developments arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all in the things end up being in place before actual construction starting to take place.
All buying this is already a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as the short to medium term prospects are looking very positive, and this is the time to speculate and develop.