Historically the real estate development market in Nigeria has been vibrant. Even so the current world economic slump did start to take wait and see in September 2008, it drained the confidence associated with many investors and the actual marketplace nose-dived considering the general financial crisis. But with the signs of economic recovery beginning to take hold again, what prospects are there for an upsurge in the commercial property markets?
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 opportunity for several years, but that the bottom of the trough ended up reached and that the greatest out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and at a time laws of supply and demand in operation, that's not a problem excess of supply far outstripping demand, prices remained depressed.
However, kent ridge hill residences showflat tackled . 12 months has seen the indications of recovery occurring in the commercial sector, other than 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is an excellent time to order. As confidence returns to the economy, the potential for new letting agreements is rising and properties are much more beginning to move, introducing a slow but steady rise in prices and rates. It is forecast this specific trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is that this may well lead for industrial property boom in 2014/15. Keep in mind with any long gestation period kids developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance - all things end up being in place before actual construction start to be fulfilled.
All within all this has grown to be 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 the time has come to speculate and invest.