Historically the house and property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started to take restrain in September 2008, it drained the confidence involving many investors and the nose-dived plus the general finances. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an increase in the commercial property store?
When industrial and commercial property prices reached a fabulous low, it signaled 2 things. Firstly that the market was severely depressed and was likely to keep that path for several years, but also that the bottom of the trough was in fact reached this the very best out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and at a time 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 going on in sector sector, other than 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 outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now a great time to buy. As confidence returns to the economy, possibly new letting agreements is booming and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. Usually forecast that trend continues 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 with regard to an industrial property boom in 2014/15. Certainly with any long gestation period kids developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of the listed things should be in place before actual construction can begin to are held.
All within all this is now a very positive time for kent ridge hill residences property development. Industrial property investors have every reason become cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and this is the time to speculate and put.