Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump begin to take be patient in September 2008, it drained the confidence associated with many investors and marketplace nose-dived plus the general economy. But with the signs of economic recovery beginning to look at hold again, kent ridge hill residences price what prospects are there for a resurgence in the economic property area?
When industrial and commercial property prices reached a fabulous low, it signaled two things. Firstly that the market was severely depressed and was likely keep that means for several years, but also that the bottom of the trough had been reached of which the only way out, was up. With all the market having stabilized at its new low, it meant how the glut of distressed properties that are already pouring in had stopped, and at a time laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs of recovery occurring in sector 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 outlook. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now a great time invest in. As confidence returns to the economy, the potential for new letting agreements is rising and properties are again beginning to move, bringing about a slow but steady rise in prices and rates. It can be forecast that trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.
Current thinking is this specific may well lead with regard to an industrial property boom in 2014/15. Certainly with such a long gestation period kids developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction will start to show up.
All for all this has grown a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as simple to medium term prospects are looking very positive, and this is the time to speculate and put.