Historically the exact property development market in Nigeria has been vibrant. Even so, kent ridge hill residences price if the current world economic slump started to take restrain in September 2008, it drained the confidence coming from many investors and the nose-dived along with the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an increase in the industrial 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 to stay that path for several years, but that the bottom of the trough were definitily reached and that the only way out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and that isn’t laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery taking place in the commercial sector, other than 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 views. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is a good time to buy. As confidence returns to the economy, the potential for new letting agreements is rising and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. It is forecast this kind of trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is until this may well lead for industrial property boom in 2014/15. Certainly with this long gestation period for first time developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction can start to be fulfilled.
All within all this has grown to be 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 make an investment.