The commercial Property Development Market – From Bust to Boom

Historically the house and property development market in Nigeria has been vibrant. Even so, if the current world economic slump begin to take suppress in September 2008, it drained the confidence associated with your many investors and kent ridge residence current market nose-dived considering the general economic climate. But with the signs of economic recovery beginning to consider hold again, what prospects are there for an increase in the industrial property area?

When industrial and commercial property prices reached a new low, it signaled 2 things. Firstly that the market was severely depressed and was likely remain in that way for several years, but additionally that the bottom of the trough ended up reached and that the very best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and together 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 indications of recovery as far back as in sector 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 one among the current optimistic probability. With economic forecasts being positive, albeit slow-moving, and prices being under they are, now is an effective time to buy. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. Always be forecast this kind of trend continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.

Current thinking is this may well lead for industrial property boom in 2014/15. Keep in mind with regarding long gestation period kids developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction starting to take place.

All within all this will finally be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and the time has come to speculate and put.

Posted by jennifer