Historically the real estate development market in Nigeria has been vibrant. But when the current world economic slump started take wait and see in September 2008, it drained the confidence associated with many investors and kent ridge hill residences the market nose-dived considering the general financial crisis. But with the signs of economic recovery beginning to look at hold again, what prospects are there for upset in the economic property markets?
When industrial and commercial property prices reached a new low, it signaled a pair of things. Firstly that the market was severely depressed and was likely to keep that means for several years, but additionally that the bottom of the trough ended up reached this the only way out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and together with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs and symptoms of recovery occurring in industry 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 certainly one of the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now is an effective time purchaser. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. It can be forecast until this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead a good industrial property boom in 2014/15. Certainly with associated with long gestation period a great deal of developments arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction will start to be fulfilled.
All in many this is now a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and it is now time to speculate and invest.