Historically the real estate development market in Nigeria has been vibrant. But when the current world economic slump began to take be patient in September 2008, it drained the confidence associated with your many investors and the nose-dived plus the general economic climate. But with the signs of economic recovery beginning to look at hold again, what prospects are there for a resurgence in the commercial property trade?
When industrial and commercial property prices reached another low, it signaled 2 things. Firstly that the market was severely depressed and was likely keep that means for several years, but as well that the bottom of the trough are already reached of which the best out, was up. With all the market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and together with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs of recovery occurring in the commercial sector, together with property prices still artificially low, this 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 one among the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now constitutes a time to order. As confidence returns to the economy, the potential for new letting agreements is rising and properties are much more beginning to move, leading to a slow but steady rise in prices and rates. It can be forecast that trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead for industrial property boom in 2014/15. However with this long gestation period moms and dads developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction starting to show up.
All in all this is now 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 it is now time to speculate and kent ridge residence put.