Historically the house and property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump began to take wait and see in September 2008, it drained the confidence associated with many investors and the 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 commercial 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 to stay that way for several years, but as well that the bottom of the trough ended up reached and that the greatest out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and with laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs of recovery going on 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 certainly one of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an excellent time purchaser. As confidence returns to the economy, the chance of new letting agreements is rising and properties are once again beginning to move, creating 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 which will eventually trigger a new bout of property development taking point.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Not surprisingly with any long gestation period moms and dads developments arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction starting to reside.
All within all this has grown a very positive time for kent ridge hill residences showflat property development. Industrial property investors have every reason to be cautiously optimistic, as the short to medium term prospects are looking very positive, and now is the time to speculate and put.