Historically the home or property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take be patient in September 2008, it drained the confidence coming from many investors and the market nose-dived coupled with general economy. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for an upsurge in the industrial property market?
When industrial and commercial property prices reached your own low, it signaled 2 things. Firstly that the market was severely depressed and was likely to keep that means for several years, but that the bottom of the trough ended up reached in which the only way out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, kent ridge hill residences and with laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the signs of recovery going on in industrial municipal debt market sector, along with 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 on life. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now is an effective time to buy. As confidence returns to the economy, the chance of new letting agreements is booming and properties are again beginning to move, leading to a slow but steady rise in prices and rates. It is forecast that trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking situation.
Current thinking is that this may well lead with regard to an industrial property boom in 2014/15. Of course 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 in the things should be in place before actual construction start to show up.
All buying this will finally be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and this is the time to speculate and put.