Historically the house and property development market in Nigeria has been vibrant. Even so, if the current world economic slump started to take hold back in September 2008, it drained the confidence associated with many investors and kent ridge hill residences showflat the nose-dived along with the general financial crisis. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for a resurgence in the industrial property markets?
When industrial and commercial property prices reached another low, it signaled two things. Firstly that the market was severely depressed and was likely keep that means for several years, but that the bottom of the trough were definitily reached and that the only way out, was up. Is not market having stabilized at its new low, it meant that the glut of distressed properties that had been 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, the last 12 months has seen the signs and symptoms of recovery developing 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 the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an excellent time to order. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, creating a slow but steady rise in prices and rates. Always be forecast that trend will continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.
Current thinking is this may well lead a good industrial property boom in 2014/15. Keep in mind with this long gestation period a great deal of developments to arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction starting to take place.
All in all this is now a very positive time for property development. Industrial property investors have every reason to be cautiously optimistic, as simple to medium term prospects are looking very positive, and the next step is to speculate and sow.