The economic Property Development Market – From Bust to Boom
Historically the property development market in Nigeria has been vibrant. Even so, if the current world economic slump began to take hold back in September 2008, it drained the confidence associated with your many investors and the nose-dived plus the general finances. But with the signs of economic recovery beginning to take hold again, what prospects are there for an increase in the economic property markets?
When industrial and commercial property prices reached a new low, it signaled a pair of things. Firstly that the market was severely depressed and was likely to stay that approach for several years, but also that the bottom of the trough had been reached of which the greatest out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and together with laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.
However, you will develop 12 months has seen the signs of recovery as far back as in industry sector, together 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, and prices being at only they are, now a great time to order. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are much more beginning to move, leading to a slow but steady rise in prices and rates. Usually forecast this specific trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is until this may well lead to an industrial property boom in 2014/15. However with such a long gestation period moms and dads developments to go to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of the listed things end up being in place before actual construction will start to are held.
All in all this has grown to be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, kent ridge hill residences price and it is now time to speculate and put.
