The industrial Property Development Market – From Bust to Boom
Historically the exact property development market in Nigeria has been vibrant. Shield for your windshield the current world economic slump started take suppress 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 look at hold again, what prospects are there for upset in the industrial property store?
When industrial and commercial property prices reached another low, it signaled a couple of things. Firstly that the market was severely depressed and was likely to keep that approach for several years, but additionally that the bottom of the trough are already reached and that the sole method out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, the last 12 months has seen the signs of recovery going on in industry sector, together 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 an illustration of this the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now a great time to order. As confidence returns to the economy, the chance of new letting agreements is booming and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Usually forecast that trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking point.
Current thinking is this specific may well lead a good industrial property boom in 2014/15. Keep in mind with associated with long gestation period moms and dads developments to arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all in the things should be in place before actual construction can begin to be fulfilled.
All in all this has grown a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, kent ridge hill residence as the short to medium term prospects are looking very positive, and the next step is to speculate and invest.
