Historically the exact property development market in Nigeria has been vibrant. Even so, if the current world economic slump did start to take be patient in September 2008, it drained the confidence involving many investors and current market nose-dived along with general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an increase in the industrial property trade?
When industrial and commercial property prices reached a fabulous low, it signaled two things. Firstly that the market was severely depressed and was likely remain in that way for several years, but as well that the bottom of the trough were definitily reached understanding that the only way out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and with the laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs and symptoms of recovery as far back as in industrial municipal debt market sector, kent ridge residence 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 one among the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now is an effective time purchase. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast that this trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking situation.
Current thinking is that this may well lead to an industrial property boom in 2014/15. Certainly with regarding long gestation period moms and dads developments to find final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction can start to take place.
All in all this is now 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 develop.