Historically the real estate development market in Nigeria has been vibrant. But when the current world economic slump started take wait and see in September 2008, it drained the confidence associated with your many investors and the market nose-dived considering the general economic situation. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an upsurge in the industrial property area?
When industrial and commercial property prices reached a new low, it signaled a pair of things. Firstly that the market was severely depressed and was likely keep that path for several years, but also that the bottom of the trough ended up reached in which the greatest out, was up. With the market having stabilized at its new low, kent ridge residence it meant how the glut of distressed properties that had been pouring in had stopped, and that isn’t laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs and symptoms of recovery taking place in industry 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 certainly one of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is an excellent time to order. As confidence returns to the economy, the chance of new letting agreements is rising and properties are once again beginning to move, creating a slow but steady rise in prices and rates. It is forecast until this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead for industrial property boom in 2014/15. Not surprisingly with any long gestation period for new developments to arrive at 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 start to show up.
All in all this is already a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and make an investment.