Building Credibility and Trust in Kenya’s Real Estate Market (Strategies for developers to build trust among investors and buyers).
Written by: Leo Toroitich
Edited by: Linet Kanario
Have you ever dreamed of owning a luxurious property with a breathtaking view of Nairobi’s bustling skyline? You are not alone, thee dream of owning a slice of prime real estate is widely shared among Kenyans today!
Our country’s real estate market has witnessed significant growth in recent years, driven by factors such as urbanization, economic expansion, and increased foreign investment. It is estimated that the real estate market in Kenya has experienced a growth of 6-8% per annum over the last 10 years and has had an increasing contribution to GDP from 10% to 12%.
Amidst Kenya’s ever-growing real estate market, the allure of luxurious high-rise developments and lucrative investment returns is undeniable. However, the path to wealth creation is not without its risks. We’ve all heard the stories: hard-earned savings vanishing into thin air, dreams shattered by unscrupulous developers. Land fraud in Kenya alone is estimated to cost a staggering 60 billion shillings annually! Imagine the anguish of families who’ve lost their life savings to a developer who simply vanished.
The good news is that with careful research and due diligence, you can protect yourself from these pitfalls and enjoy the fruits of your real estate investment stress free.
Building trust and credibility among investors and buyers remains crucial for developers to succeed.
In this article, we explore a few strategies for developers to build trust among investors and some factors you should be keen on when choosing your developer.
- Portray a strong track record
The single and most important way to build trust is to portray a strong track record and portfolio of previous developments that have been completed and delivered to clients. A successful track record shows a developer’s ability to execute projects within a budget and to a high standard of quality. This demonstrates their expertise in the industry and reassures potential investors.
Investors are more likely to trust a developer with a proven history of delivering successful projects. A positive track record can instill confidence in their ability to manage risks, navigate challenges, and deliver on promises thus building the developer’s credibility.
2. Maintain a client-centric approach
Maintaining a client-centric approach involves a developer putting the client and their needs first through the entire real estate process. This portrays a commitment to the buyer’s specific requirements. This may involve providing expert advice, addressing concerns professionally and offering referrals for related services such as trusted lawyers, mortgage brokers and land surveyors. Although unexpected risks may arise during the construction process, maintaining transparency and fostering two-way communication portrays a developer as honest and truthful. Such a client-centric approach allows the investor to develop a relationship with the developer and feel a sense of trustworthiness. This approach may also foster an after-sales relationship where previous buyers recommend the developer to their networks. A word-of-mouth referral is often more impactful for a developer’s credibility than any of its own marketing practices.
3. Humanize the brand
A developer can humanize its brand by featuring and highlighting key personnel in the firm. This may include the CEO, director, project manager and architects. Putting a face to the brand allows for buyers and investors to personalize the brand. It also allows them to do a background check on the key personnel of the firm for further credibility. When personnel are placed as brand ambassadors, they often develop a commitment to the reliability and credibility of the brand as it would have a lasting effect on their personal credibility.
4. Develop an active online presence
An online presence involves a wide array of activities to boost the brand’s visibility online. This may involve having a well-updated and informative website, an active social media presence and an updated newsletter. Such examples foster the developer’s relations with clients as well as adding an element of transparency in their projects. This approach enables quick and easy communication with a wide array of customers and an avenue for customer feedback. An overall up-to-date digital presence displays a commitment to the developer to maintain client relations and two-way communication which may play a significant role in building the developer’s trustworthiness.
5. Environmental sustainability
By initiating green building and sustainability initiatives, the developer portrays an approach that is not only profit-centric but one that is dedicated to a greener future. Such initiatives include implementing energy-efficient systems, utilizing sustainable materials, and minimizing waste. Although such practices may come at the expense of a lower profit margin, they demonstrate a commitment to a developer’s environmental responsibility. These initiatives not only reduce the project’s ecological footprint but also enhance the project’s long-term value as a real estate investment.
Conclusively, in today’s expansive real estate market, investors are more vigilant than ever about fraudulent real estate practices. It is therefore paramount for developers to build and maintain credibility throughout the development journey. This will ensure that buyers investments are secure and ultimately leading to long-run success in Kenya’s real estate market.
References:
https://kmrc.co.ke/resource/issue-9-research-insights-on-macroeconomic-outlook-and-industry