Historically the property development market in Nigeria has been vibrant. Even so the current world economic slump began to take wait and see in September 2008, it drained the confidence coming from many investors and marketplace nose-dived along with the general economy. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the economic property area?
When industrial and commercial property prices reached a new low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to stay that approach for several years, but also that the bottom of the trough were definitily reached and that the best out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and together with laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the indications of recovery taking place in the commercial 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 the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is a good time invest in. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are once again beginning to move, bringing about a slow but steady rise in prices and rates. It can be forecast this kind of trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking situation.
Current thinking is this may well lead a good industrial property boom in 2014/15. Of course with regarding long gestation period a great deal of developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction starting to take place.
All within all this will finally be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and now is the time to speculate and kent ridge hill residences showflat sow.