Historically the real estate development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump began to take wait and see in September 2008, it drained the confidence coming from many investors and marketplace nose-dived along with general economy. But with the signs of economic recovery beginning to look at hold again, what prospects are there for upset in the commercial property area?
When industrial and commercial property prices reached a new low, it signaled 2 things. Firstly that the market was severely depressed and was likely keep that path for several years, but that the bottom of the trough was in fact reached and that the best out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and at a time laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the indications of recovery developing in sector sector, by means of 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 views. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is an excellent time invest in. As confidence returns to the economy, the opportunity for new letting agreements is rising and kent ridge hill residences price properties are once again beginning to move, introducing a slow but steady rise in prices and rates. It can be forecast until this trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking point.
Current thinking is that this may well lead for industrial property boom in 2014/15. Certainly with this long gestation period moms and dads developments to arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction can begin to be fulfilled.
All within all this has grown to be a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as simple to medium term prospects are looking very positive, and now is the time to speculate and make an investment.