Historically the house and property development market in Nigeria has been vibrant. But when the current world economic slump started take wait and see in September 2008, it drained the confidence associated with many investors and marketplace nose-dived along with the general economic situation. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for upset in the industrial property trade?
When industrial and commercial property prices reached a good solid low, it signaled 2 things. Firstly that the market was severely depressed and was likely keep that approach for several years, but additionally that the bottom of the trough were definitily reached in which the greatest out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and together with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs and symptoms of recovery taking place in the commercial sector, other than 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. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is an effective time to order. As confidence returns to the economy, the chance of new letting agreements is booming and properties are had been beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast this specific trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking situation.
Current thinking is until this may well lead with regard to an industrial property boom in 2014/15. However with regarding long gestation period moms and dads developments to arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction start to reside.
All within all this has grown to be a very positive time for kent ridge hill residences showflat property development. Industrial property investors have every reason become cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the time has come to speculate and invest.