Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started to take suppress in September 2008, it drained the confidence out of many investors and the market nose-dived coupled with general financial crisis. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the industrial property store?
When industrial and commercial property prices reached a fabulous low, it signaled a couple of things. Firstly that the market was severely depressed and was likely remain in that way for several years, but additionally that the bottom of the trough were definitily reached of which the sole method out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs of recovery occurring 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 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 a great time to buy. As confidence returns to the economy, possibly new letting agreements is rising and properties are had been beginning to move, bringing about a slow but steady rise in prices and rates. Is usually forecast until this trend will continue 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 for industrial property boom in 2014/15. Of course with this long gestation period for new developments to come to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction starting to be fulfilled.
All buying this has grown to be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, kent ridge hill residences price and now is the time to speculate and develop.