Historically the home or 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 associated with your many investors and marketplace nose-dived along with the general economy. But with the signs of economic recovery beginning to look at hold again, what prospects are there for upset in the industrial property area?
When industrial and commercial property prices reached a good solid low, it signaled two things. Firstly that the market was severely depressed and was likely to keep that means for several years, but that the bottom of the trough had been reached understanding that the very best out, was up. With all the market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and with the laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the symptoms of recovery taking place 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 one among the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now a great time purchase. As confidence returns to the economy, the chance of new letting agreements is rising and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. It can be forecast this specific trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this may well lead with regard to an industrial property boom in 2014/15. However with this long gestation period for new developments to go to final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction can start to are held.
All in many this is already a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as the short to medium term prospects are looking very positive, and the time has come to speculate and make an investment.