Historically the real estate development market in Nigeria has been vibrant. Even so the current world economic slump started take be patient in September 2008, it drained the confidence coming from many investors and the actual marketplace nose-dived coupled with 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 trade?
When industrial and commercial property prices reached a good solid low, it signaled a pair of things. Firstly that the market was severely depressed and was likely to stay that way for several years, but additionally that the bottom of the trough were definitily reached this the greatest out, was up. Is not market having stabilized at its new low, it meant how 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 signs and symptoms of recovery occurring in industrial municipal debt market sector, kent ridge residence 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 an illustration of this the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now is a good time invest in. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are had been beginning to move, resulting in a slow but steady rise in prices and rates. Always be forecast this specific trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is that this may well lead with regard to an industrial property boom in 2014/15. Certainly with regarding long gestation period kids developments to go to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction can start to show up.
All in many this has grown a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as simple to medium term prospects are looking very positive, and the next step is to speculate and sow.