Historically the real estate development market in Nigeria has been vibrant. Even so, if the current world economic slump began to take hold back in September 2008, it drained the confidence associated with many investors and marketplace nose-dived plus the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the economic property trade?
When industrial and commercial property prices reached a fabulous low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that path for several years, but as well that the bottom of the trough are already reached this the very best out, was up. With all the market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and at a time laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the warning signs of recovery developing in the commercial sector, together 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 a good example of the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now is an excellent time to buy. As confidence returns to the economy, possibly new letting agreements is booming and properties are much more beginning to move, creating a slow but steady rise in prices and rates. Always be forecast this kind of trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking situation.
Current thinking is this may well lead a good industrial property boom in 2014/15. Not surprisingly with regarding long gestation period kids developments arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction will start to take place.
All buying this is now a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as quick to medium term prospects are looking very positive, and the time has come to speculate and kent ridge hill residences invest.