Historically the house and kent ridge hill residence property development market in Nigeria has been vibrant. Coverage the current world economic slump started take hold back in September 2008, it drained the confidence out of many investors and the actual marketplace nose-dived considering the general economy. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the economic property trade?
When industrial and commercial property prices reached a good solid low, it signaled a pair of things. 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 were definitily reached of which the sole method out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and that isn’t laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, tackled . 12 months has seen the signs and symptoms of recovery occurring in industry 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 certainly one of the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is an effective time to order. As confidence returns to the economy, the chance of new letting agreements is rising and properties are again beginning to move, resulting in a slow but steady rise in prices and rates. It is forecast that trend continue slowly but surely, depleting the supply surplus that 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. Certainly with this long gestation period a great deal of developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction start to take place.
All within all this will finally be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and this is the time to speculate and put.