Historically the real estate 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 associated with many investors and the actual marketplace nose-dived plus the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the industrial property market?
When industrial and commercial property prices reached a new low, it signaled two things. Firstly that the market was severely depressed and was likely to stay that means for several years, but additionally that the bottom of the trough ended up reached of which the sole method out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and that isn’t laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs and symptoms of recovery developing in industrial municipal debt market sector, kent ridge hill residences price 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 probability. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an excellent time invest in. As confidence returns to the economy, possibly new letting agreements is booming and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. It can be forecast that this trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking situation.
Current thinking is until this may well lead to an industrial property boom in 2014/15. Certainly with such a long gestation period a great deal of developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction starting to reside.
All within all this is already a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as of course to medium term prospects are looking very positive, and this is the time to speculate and make an investment.