Historically the home or kent ridge hill residences showflat property development market in Nigeria has been vibrant. Even so the current world economic slump started to take be patient in September 2008, it drained the confidence involving many investors and the nose-dived coupled with general economic climate. But with the signs of economic recovery beginning to consider hold again, what prospects are there for a resurgence in the industrial property market?
When industrial and commercial property prices reached a good solid low, it signaled 2 things. Firstly that the market was severely depressed and was likely in which to stay that opportunity for several years, but additionally that the bottom of the trough ended up reached of which the sole method out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and with the laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs and symptoms of recovery taking place in industry sector, and 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 an illustration of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is an excellent time to buy. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. It is forecast this kind of trend will continue slowly but surely, depleting the supply surplus may 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. Certainly with such a long gestation period kids developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction will start to take place.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and invest.