Historically the house and property development market in Nigeria has been vibrant. Even so the current world economic slump did start to take hold back in September 2008, it drained the confidence out of many investors and marketplace nose-dived along with general economy. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for a resurgence in the industrial property market?
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 keep that means for several years, but also that the bottom of the trough was in fact reached of which the best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and at a time laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs of recovery as far back as in the commercial 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 certainly one of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is a good time purchaser. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. Usually forecast until this trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking point.
Current thinking is until this may well lead for industrial property boom in 2014/15. Of course with associated with long gestation period for new developments to go to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, kent ridge hill residence finance – all of those things should be in place before actual construction starting to are held.
All for all this will finally be a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as of course to medium term prospects are looking very positive, and the next step is to speculate and sow.