Historically the real estate development market in Nigeria has been vibrant. Coverage the current world economic slump did start to take wait and see in September 2008, it drained the confidence out of many investors and current market nose-dived plus the general financial crisis. But with the signs of economic recovery beginning to look at hold again, kent ridge hill residence what prospects are there for a resurgence in the economic property store?
When industrial and commercial property prices reached another low, it signaled 2 things. Firstly that the market was severely depressed and was likely in which to stay that way for several years, but also that the bottom of the trough was in fact reached and that the best out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and at a time laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the warning signs of recovery occurring in industrial municipal debt market sector, and 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 costs being as little as they are, now a great time purchaser. As confidence returns to the economy, the potential for new letting agreements is booming and properties are had been beginning to move, leading to a slow but steady rise in prices and rates. It is forecast this specific 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 until this may well lead with regard to an industrial property boom in 2014/15. However with this long gestation period for first time developments to find final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all in the things end up being in place before actual construction starting to show up.
All for all this is now a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as the short to medium term prospects are looking very positive, and it is now time to speculate and sow.