Challenges Faced by the Real Estate Industry

Real Estate has been blooming as a prospective business for the past decade. With the rising demand for housing and land, the need for real estate business is on the rise. The real estate business is the source of bread and butter for many land brokers construction companies, renting & leasing agents worldwide. We have been managing data entry services for many real estate companies worldwide and based on our experiences of this industry let’s discuss some of the major challenges faced by the real estate data entry industry across the world.

With the political changes in our democratic country, real estate business is affected directly. Nowadays, there is no shortage of reports in the news and media, how the real estate business is facing some major crisis. Let us browse through some of them in brief:

• Erratic climate: As far-fetched as it sounds, the real estate business is severely affected by climate change. If we look at the climatic conditions around the world, we will find that a lot has changed drastically.

Flash floods, floods, the water crisis is a commonplace incident in many rural and urban areas. Cape Town in South Africa has already gone dry and water is being rationed.

These have hindered the pace of construction to a large extent. Builders have often failed to complete projects due to the water crisis.

As a result, prices have increased but buyers have decreased. Many realtors have to pay heavy penalties due to the delay in construction.

• Political instability and changes: In a democratic country, politics affects the business directly. The business owners in our country have to keep a steady relationship with the leading political parties in order to work smoothly.

The rise in the political instability in our nation has directly impacted the real estate business. Many new laws have been enforced in the property and land rights arena which has not always been favorable for the business. The existing laws have been made strict. In other countries where political turmoil involves civil war, an uprising against incumbent governments, dictatorship, overthrowing of an elected government by militia or army real estate demand and prices nosedive.

• Inflation and the rise in the cost of raw materials: Everyone is affected when it comes to inflation. Inflation is like wildfire that affects everything related to it.

The rise in the cost of raw materials for construction is creating a lot of pressure on the builders. They have to also meet the demands of the construction laborers who are demanding a hike in pay, subsequently.

The above factors are leading to a rise in the cost of property and housing. In such a situation, buyers are less interested to pay more for the similar property that was available cheaper a few years back.

This cross-web is directly affecting the real estate business in more than one way. The market is filled with realtors whose inventories are overflowing, but there is a lack of buyers.

Demonetization, for instance, dealt a heavy blow to the realtors recently. The introduction of GST has not been very favorable for some realtors also.

Thus, the real estate business is up for a severe roadblock as of now. The dwindling ration of buyers and the rising cost of building, advertising fees, etc is inversely affecting business.

The increase instance of brokerage is also demotivating the buyers who would otherwise like to strike a deal on a one-to-one basis. Many prospective buyers have complained that they are not willing to pay the brokerage cost while acquiring property or land, thus affecting the business.