Historically the exact property development market in Nigeria has been vibrant. Even so the current world economic slump started take suppress in September 2008, it drained the confidence associated with your many investors and marketplace 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 upset in the economic property store?
When industrial and commercial property prices reached your own low, it signaled a pair of things. Firstly that the market was severely depressed and was likely in which to stay that path for several years, but additionally that the bottom of the trough had been reached and that the sole method 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, the actual excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the signs and symptoms of recovery occurring in sector sector, together 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now constitutes a time to buy. As confidence returns to the economy, possibly new letting agreements is rising and properties are again beginning to move, creating a slow but steady rise in prices and rates. It is forecast that this trend will continue slowly but surely, depleting the supply surplus may 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. Keep in mind with such a long gestation period a great deal of developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, kent ridge hill residences price finance - all of these things end up being in place before actual construction can start to show up.
All in all this is already a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as quick to medium term prospects are looking very positive, and now is the time to speculate and develop.