Historically the real estate development market in Nigeria has been vibrant. Coverage the current world economic slump begin to take suppress in September 2008, it drained the confidence associated with many investors and current market nose-dived plus the general economic situation. But with the signs of economic recovery beginning to take hold again, what prospects are there for kent ridge residence an upsurge in the commercial property trade?
When industrial and commercial property prices reached a fabulous low, it signaled 2 things. Firstly that the market was severely depressed and was likely keep that way for several years, but as well that the bottom of the trough was in fact reached of which the greatest out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the symptoms of recovery developing in sector 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 an illustration 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 a good time to buy. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are had been beginning to move, creating a slow but steady rise in prices and rates. It can be forecast this kind of trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.
Current thinking is this may well lead for industrial property boom in 2014/15. Of course with regarding long gestation period for new developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction will start to take place.
All in many this will finally be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as quick to medium term prospects are looking very positive, and now is the time to speculate and put.