Historically the exact property development market in Nigeria has been vibrant. Shield for your windshield 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 plus the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the commercial property market?
When industrial and commercial property prices reached a good solid low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to keep that opportunity for several years, but additionally that the bottom of the trough were definitily reached in which the sole method out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the symptoms of recovery developing in sector 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 the current optimistic outlook. 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 potential for new letting agreements is rising and properties are again beginning to move, creating a slow but steady rise in prices and rates. Always be forecast until this trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this may well lead for industrial property boom in 2014/15. Of course with any long gestation period kids developments to find final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction start to reside.
All for all this is already a very positive time for kent ridge hill residences showflat property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and the next step is to speculate and invest.