Historically the house and kent ridge hill residences price property development market in Nigeria has been vibrant. Even so, if the current world economic slump begin to take be patient in September 2008, it drained the confidence out of many investors and the nose-dived along with general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the commercial property area?
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 path for several years, but also that the bottom of the trough were definitily reached understanding that the greatest out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and that isn’t laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the symptoms of recovery as far back as in the commercial 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 an illustration of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now is a good time to buy. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are much more beginning to move, creating a slow but steady rise in prices and rates. It is forecast that trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is until this may well lead a good industrial property boom in 2014/15. Keep in mind with any long gestation period moms and dads developments to go to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction can start to reside.
All for all this is now a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and it is now time to speculate and develop.