Historically the home or kent ridge hill residences price property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump begin to take suppress in September 2008, it drained the confidence involving many investors and current market nose-dived along with the general economic situation. But with the signs of economic recovery beginning to consider hold again, what prospects are there for becoming bitten in the economic property trade?
When industrial and commercial property prices reached your own low, it signaled a pair of things. Firstly that the market was severely depressed and was likely in which to stay that approach for several years, but as well that the bottom of the trough was in fact reached and that the very best out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that had been 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, tackled . 12 months has seen the indications of recovery taking place in industrial municipal debt market 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 prices being at only they are, now is an effective time to buy. As confidence returns to the economy, the opportunity for new letting agreements is rising and properties are had been beginning to move, introducing a slow but steady rise in prices and rates. It can be forecast this specific trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.
Current thinking is this kind of may well lead a good industrial property boom in 2014/15. Certainly with such a long gestation period for new developments to come to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all in the things should be in place before actual construction start to take place.
All in all this is now a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and sow.