The commercial Property Development Market – From Bust to Boom
Historically the real estate development market in Nigeria has been vibrant. Shield for kent ridge residence your windshield the current world economic slump started take restrain in September 2008, it drained the confidence associated with your many investors and the market nose-dived along with general economy. But with the signs of economic recovery beginning to consider hold again, what prospects are there for a resurgence in the industrial property area?
When industrial and commercial property prices reached another low, it signaled to show your internet. Firstly that the market was severely depressed and was likely keep that way for several years, but that the bottom of the trough had been reached in which the only way out, was up. With 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, with the excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the warning signs of recovery going on 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 one among the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being under they are, now is an excellent time purchaser. As confidence returns to the economy, possibly new letting agreements is rising and properties are again beginning to move, creating a slow but steady rise in prices and rates. Is usually forecast this kind of trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking situation.
Current thinking is this specific may well lead to an industrial property boom in 2014/15. Of course with any long gestation period for new developments to go to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction can begin to are held.
All within all this is now a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and make an investment.
