The commercial Property Development Market – From Bust to Boom
Historically the house and property development market in Nigeria has been vibrant. Coverage the current world economic slump started to take wait and see in September 2008, it drained the confidence associated with your many investors and the market nose-dived coupled with general financial crisis. But with the signs of economic recovery beginning to consider hold again, what prospects are there for upset in the commercial property markets?
When industrial and commercial property prices reached a fabulous low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to stay that approach for several years, kent ridge hill residences price but as well that the bottom of the trough was in fact reached this the very best out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and together with laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the warning signs of recovery taking place in the commercial sector, and with 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 a good example of the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is a good time purchase. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, resulting in a slow but steady rise in prices and rates. It is forecast that this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Keep in mind with such a long gestation period moms and dads developments to go to final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction can begin to are held.
All in many this has grown a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and make an investment.
