Historically the real estate development market in Nigeria has been vibrant. Even so the current world economic slump started take hold back in September 2008, it drained the confidence involving many investors and the market nose-dived considering the general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the economic property trade?
When industrial and commercial property prices reached another low, it signaled to show your internet. Firstly that the market was severely depressed and was likely keep that path for several years, kent ridge hill residences price but that the bottom of the trough was in fact 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 being pouring in had stopped, and that isn't laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs and symptoms of recovery developing in sector sector, together 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 a good example of the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs 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 once again beginning to move, resulting in a slow but steady rise in prices and rates. Usually forecast that trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this kind of may well lead a good industrial property boom in 2014/15. Keep in mind with regarding long gestation period moms and dads developments arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance - all of these things must be in place before actual construction starting to be fulfilled.
All in all this will finally be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and it is now time to speculate and invest.