Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started to take wait and see in September 2008, it drained the confidence involving many investors and current market nose-dived along with the general financial crisis. But with the signs of economic recovery beginning to take hold again, what prospects are there for upset in the commercial property trade?
When industrial and commercial property prices reached a good solid low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to stay that way for several years, but additionally that the bottom of the trough were definitily reached in which the very best out, was up. Is not market having stabilized at its new low, it meant that 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, explored 12 months has seen the indications of recovery as far back as in the commercial sector, along with property prices still artificially low, it 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 at only they are, now a great time to order. As confidence returns to the economy, the potential for new letting agreements is rising and properties are again beginning to move, resulting in a slow but steady rise in prices and rates. Always be forecast that trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking situation.
Current thinking is that this may well lead a good industrial property boom in 2014/15. However with associated with long gestation period for first time developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all in the things should be in place before actual construction start to reside.
All for all this is now a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, kent ridge hill residences price as of course to medium term prospects are looking very positive, and now is the time to speculate and make an investment.