Historically the real estate development market in Nigeria has been vibrant. But when the current world economic slump did start to take restrain in September 2008, kent ridge residence it drained the confidence associated with many investors and the actual marketplace nose-dived along with general economic climate. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the industrial property store?
When industrial and commercial property prices reached a good solid low, it signaled two things. Firstly that the market was severely depressed and was likely to stay that means for several years, but also that the bottom of the trough were definitily reached this the greatest out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and together 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 symptoms of recovery occurring in industrial municipal debt market sector, and 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 probability. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now a great time to order. As confidence returns to the economy, possibly new letting agreements is booming and properties are once again beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast until this trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking venue.
Current thinking is this kind of may well lead for industrial property boom in 2014/15. Of course with such a long gestation period kids developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction can start to reside.
All in all this is now a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as the short to medium term prospects are looking very positive, and this is the time to speculate and put.