Agents helping clients find innovative solutions

Surveyor and Hotstep Holdings director Stephen Kigathi. [File, Standard]

Real estate has always been a dynamic and lucrative industry, though it has faced unprecedented challenges.

These challenges have been felt by everyone, from real estate developers to property owners and investors.

In response, companies have had to adapt and come up with innovative solutions to remain competitive and thrive in the face of these challenges.

One of the biggest challenges that the real estate industry has faced is the impact of Covid-19.

The pandemic led to a decline in demand for real estate as people were hesitant to move or invest in new properties.

Closure of businesses also affected commercial real estate as many companies are no longer able to afford office spaces.

In addition, the limited availability of affordable housing in many regions affects the industry's growth in real estate.

As populations continue to grow and urbanisation accelerates, there is increasing demand for shelter, particularly affordable housing.

However, developers face challenges in finding suitable land to develop or securing financing for affordable housing projects.

Another challenge faced by the real estate industry is the need for sustainability and energy efficiency. Climate change continues to impact our planet and there is an increasing need for sustainable buildings that are designed to minimise their environmental impact.

However, building green can be expensive, and developers may not be able to justify the additional cost of sustainability features.

Additionally, there may be limited availability of sustainable building materials or contractors with the necessary expertise.

Finally, the real estate industry is also subject to market volatility and economic downturns, which can impact property values and investor returns.

Economic factors such as interest rates, inflation, and employment rates can all affect demand for real estate, which in turn impacts property values and investor returns.

This can make it difficult for developers and investors to accurately forecast future returns and plan for long-term growth.

However, collaborations between industry stakeholders and government policymakers can develop innovative solutions that address these challenges and create a more vibrant and sustainable real estate market.

Ways of addressing these challenges include innovative financing solutions. Many real estate agents have developed financing solutions that help to attract new buyers and investors who may have been hesitant to invest during uncertain times.

These include flexible payment plans, mortgage options and customised financing packages to meet the unique needs of each buyer or investor.

In addition, agents have adopted technology to create virtual property tours, allowing prospective buyers to view portfolios remotely.

This was especially useful during periods of lockdown and social distancing when in-person viewings were not possible. The companies have also invested in digital marketing to reach a wider audience and showcase their properties.

Community engagement is also key as estate agents recognise the importance of being part of the communities in which they operate.

This has led to initiatives such as sponsoring events and supporting local businesses to build strong relationships and contribute to the growth and development of the communities in which they operate.

Real estate agents also work with the government to advocate for policies that support the growth and development of the industry.

This includes streamlining regulatory processes and removing barriers to development, ensuring that the industry can operate efficiently and effectively.

However, there are still biting policy issues, such as concern that the government is imposing excessive taxes on the industry.

While it is understandable that governments need to generate revenue, imposing taxes that are too high can have a negative impact on the industry as a whole.

This is why it is important for the government to work with industry stakeholders to develop policies that support the growth of the sector, rather than stifling it.

- The writer is a land surveyor and director of Hotstep Holdings Ltd.