Real Estate Market Volatility: The Way Forward
ESV Frank Ewere Akpabor
The Nigerian economy is becoming too volatile for businesses to survive. The harsh economic climate is eroding policies that hitherto worked for businesses. Most sectors of the Nigerian economy are at crossroads on what to do next in order to keep floating as going concern entities.
In a very volatile economy, as we have in Nigeria, operators in the real estate market must adopt resilience. Their ability to adapt to the fast-changing economic landscape, while leveraging on their internal and external resources is one of the ways to navigate through the daunting periods. Every resource at their disposal must be turned into an opportunity.
The present macroeconomic changes are not favouring real estate and other businesses in Nigeria. The ability to adapt swiftly to market fluctuations is a key policy strategy real estate brands must put in place to remain profitable in business.
Innovations of doing business at a reduced cost should be fostered to cut down operational cost. Irrespective of the real estate market segment, adopting innovations through the deployment of state-of-the-art technology will help in the overall cost reduction. Uncertainties are sure, and business innovation strategies are what will demystify the uncertainties. Real estate business owners, managers, and professionals must adapt, innovate, and re-strategize to remain in business in an uncertain time like this.
Managing great complexities is another way to stay focus, and competitive in the face of the harsh economic climate. With volatility and uncertainties, complex business scenarios must surface. Problem-solving skills of real estate professionals should be honed to manage these complexities that arose as a result of the current economic crunch. Complexities will always challenge the business status quo, and the ability to turn them to opportunities is what makes a real estate professional in the face of an uncongenial economic climate as being experienced in Nigeria and most African countries today.
Another way forward in a time of market volatility and economic turbulent is the need to strengthen ethical issues in all facets of real estate transactions. Because of the changing economic landscape, low business turnover, and general scarcity of funds (domestic and foreign exchange), the tendency to cut corners by professionals in the real estate space is very high. For a forward-thinking real estate brand, cutting corners is not the way to make a profit when the economy bites hard. A wrong step unethically taken can destroy the reputation built by the brand over the years. Staying ethically in all lines of real estate transactions in difficult times is a sure way of maintaining business integrity.
In all, real estate businesses that must scale through the current economic crunch must adapt strategies for business growth and development in line with the current economic realities. In a similar vein, these businesses must also maintain sustainability and ethical standards, as they are sine-qua-non on the way forward.
ESV Frank Ewere Akpabor, a registered Estate Surveyor and Valuer sent this piece from Benin City, Edo State.
