Kenya’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. As investors flock to capitalize on the booming sector, it’s imperative to exercise caution and conduct thorough due diligence when selecting developers. It is estimated that land fraud in Kenya has a total annual cost of 60 billion shillings. To avoid scams and pitfalls, investors must carefully evaluate a developer’s credibility to ensure their investments are safe. 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 buyers in the real estate market.

1. 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 showcases a developer’s ability to execute projects on time, within 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. 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 humanize the brand. It further 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. Enroll in a professional board: Enrolling in a professional body such as the Kenyan Property Developer’s Association (KPDA) demonstrates the developer’s commitment to ethical standards, professional development, and industry best practices. Membership provides visibility of the developer and places them under the necessary scrutiny to adhere to all standards and requirements in the development process. This would instill confidence in investors and prospective buyers.

In conclusion, 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 lead to long-term success in Kenya’s real estate market.

References:
https://kmrc.co.ke/resource/issue-9-research-insights-on-macroeconomic-outlook-and-industry
https://sbs.strathmore.edu/trends-in-the-kenyan-real-estate-sector-a-focus-on-real
estate-investment-trusts-reits/
https://www.businessdailyafrica.com/bd/markets/market-news/land-fraudsters-wreak-havoc-on-kenyan-families-2157358