Historically the property development market in Nigeria has been vibrant. Coverage the current world economic slump begin to take wait and see in September 2008, it drained the confidence associated with many investors and the actual marketplace nose-dived plus the general financial crisis. But with the signs of economic recovery beginning to consider hold again, what prospects are there for becoming bitten in the industrial property market?
When industrial and commercial property prices reached a fabulous low, it signaled a couple of things. Firstly that the market was severely depressed and was likely remain in that opportunity for several years, but additionally that the bottom of the trough ended up reached in which the only way out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs and symptoms of recovery going on 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 this the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now a great time purchase. As confidence returns to the economy, the potential for new letting agreements is rising and properties are had been beginning to move, resulting in a slow but steady rise in prices and rates. It can be forecast that this trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.
Current thinking is that this may well lead a good industrial property boom in 2014/15. Not surprisingly with associated with long gestation period a great deal of developments to find final fruition, the process needs always be kicked off now. Feasibility studies, kent ridge hill residence surveys, finance – all of the listed things must be in place before actual construction will start to take place.
All for all this will finally be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as simple to medium term prospects are looking very positive, and it is now time to speculate and make an investment.