The economic Property Development Market – From Bust to Boom
Historically the property development market in Nigeria has been vibrant. But when the current world economic slump began to take hold back in September 2008, it drained the confidence coming from many investors and the market nose-dived along with general economic situation. But with the signs of economic recovery beginning to consider hold again, what prospects are there for becoming bitten in the industrial property markets?
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 to stay that approach for several years, but that the bottom of the trough were definitily reached understanding that the best out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that were actually pouring in had stopped, and that isn’t laws of supply and demand in operation, that’s not a problem excess of supply far outstripping demand, kent ridge hill residences showflat prices remained depressed.
However, you will develop 12 months has seen the signs of recovery going on in industrial municipal debt market 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 certainly one of the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now constitutes a time to buy. As confidence returns to the economy, the opportunity of 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 this specific trend will continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead a good industrial property boom in 2014/15. However with such a long gestation period for first time developments to come to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction will start to show up.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and develop.