Historically the house and property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump did start to take suppress in September 2008, it drained the confidence out of many investors and the market nose-dived plus the general financial crisis. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for a resurgence in the commercial property store?
When industrial and commercial property prices reached your own low, it signaled 2 things. Firstly that the market was severely depressed and was likely to keep that opportunity for several years, but as well that the bottom of the trough was in fact reached understanding that the very best out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and with the laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs of recovery occurring in industrial municipal debt market sector, by means of 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 an illustration of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now a great time purchaser. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. Is usually forecast that this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is until this may well lead a good industrial property boom in 2014/15. Keep in mind with such a long gestation period a great deal of developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction start to are held.
All within all this will finally be a very positive time for kent ridge hill residences price property development. Industrial property investors have every reason to cautiously optimistic, as of course to medium term prospects are looking very positive, and it is now time to speculate and develop.