Historically the real estate development market in Nigeria has been vibrant. Even so the current world economic slump began to take restrain in September 2008, it drained the confidence associated with many investors and current market nose-dived along with the general economic situation. But with the signs of economic recovery beginning to consider hold again, what prospects are there for a resurgence in the industrial property store?
When industrial and kent ridge hill residences price commercial property prices reached a new low, it signaled a pair 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 understanding that the sole method out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that were 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 indications of recovery developing in industrial municipal debt market sector, and 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 an illustration of this the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now constitutes a time purchaser. As confidence returns to the economy, possibly new letting agreements is booming and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. It can be forecast this kind of trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. Certainly with any long gestation period kids developments to find final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction can start to reside.
All within all this will finally be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as of course to medium term prospects are looking very positive, and the next step is to speculate and develop.