Historically the real estate development market in Nigeria has been vibrant. Even so the current world economic slump began to take wait and see in September 2008, it drained the confidence coming from many investors and the market nose-dived plus the general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for upset in the commercial property trade?
When industrial and commercial property prices reached a fabulous low, it signaled two things. Firstly that the market was severely depressed and was likely to stay that means for several years, but also that the bottom of the trough had been reached and that the best out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and at a time laws of supply and demand in operation, that's not a problem excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs of recovery as far back as in industrial municipal debt market sector, and with property prices still artificially low, this has begun to stimulate demand, kent ridge residence 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now a great time purchaser. As confidence returns to the economy, the chance of new letting agreements is booming and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. Usually forecast until this trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is that this may well lead a good industrial property boom in 2014/15. Not surprisingly with any long gestation period moms and dads developments to find final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance - all of these things end up being in place before actual construction can start to are held.
All in many this will finally be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and make an investment.