Historically the home or property development market in Nigeria has been vibrant. Even so, if the current world economic slump begin to take be patient in September 2008, kent ridge hill residences price it drained the confidence coming from many investors and current market nose-dived along with general economic climate. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for a resurgence in the industrial property markets?
When industrial and commercial property prices reached your own low, it signaled two things. Firstly that the market was severely depressed and was likely to keep that means for several years, but as well that the bottom of the trough ended up reached and that the very best out, was up. Is not 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, with the excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the warning signs of recovery developing in the commercial sector, along 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 probability. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an excellent time purchase. As confidence returns to the economy, the chance of new letting agreements is booming and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. It is forecast this kind of trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead to an industrial property boom in 2014/15. Of course with regarding long gestation period kids developments to arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction can begin to reside.
All in all this is already a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and develop.