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 involving many investors and marketplace nose-dived coupled with general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the industrial property store?
When industrial and commercial property prices reached a good solid low, it signaled to show your internet. Firstly that the market was severely depressed and was likely in which to stay that opportunity for several years, but that the bottom of the trough are already reached understanding that the sole method out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that are already pouring in had stopped, and with 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, along 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 certainly one of the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now constitutes a 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, bringing about a slow but steady rise in prices and rates. Always be forecast that this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead to an industrial property boom in 2014/15. Not surprisingly with any long gestation period for new developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction start to reside.
All in many this is already a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as quick to medium term prospects are looking very positive, kent ridge hill residence and it is now time to speculate and make an investment.