Developers adopt new innovations to beat economic downturn
With real estate market severely hit by the liquidity crisis, investors and developers are resorting to innovations to meet their financial needs.Most of them are grappling with lenders’ apathy and showing deeper signs of distress, reflected in the schemes and discounts offered by developers to push sales. Some of the property investors have already abandoned their sites.
Currently, few of them are remodeling their projects, resorting to low budget and apartment developments, looking for other sources of funding and adopting flexible mortgage options to woo up-takers.
According to Debo Adejana, the Managing Director, Realty Point Limited, part of the innovative drives by firms is seen in their concentration on development of flats. Adejana noted that one of these strategies is to build clients’ assurance by getting a third party guarantor beyond the developer.By so doing, investors are more reassured that when they pay into a project, they are not just paying to the developer but to a third party guarantor so that the property will be built and delivered to them within a specified time.
Another innovation is by adopting bioscope mortgages.This, he said involves sitting down with clients and understanding their challenges in a bid to work around their mortgages.
The Managing Director, Tobykemsworth Real Estate Company, Mr. Adekunle Raphael-Monehin, revealed that developers now repackage abandoned projects. The strategy is being done in Honeywell Gardens, Maryland, where the developer is aligning it with Imperial Majesty Garden to get more mileage.The idea behind such move, he said is to utilise the visions and personalities involved in the other projects to revive the moribund one, thereby unlocking the dead capital.
Mr. Adekunle Raphael-Monehin said the new strategy involve a brand new design and concept in the same location with diverse targets to get off takers, thereby addressing the issue of funding in the development. Similarly, the Managing Director of Lifepage Group, Mr. Oladipupo Clement told The Guardian that many developers and investors are also converting their vast portion of lands in various locations through a real estate crowd-funding platform that allows subscribers to make gains in cash and/or assets while the capital sum is still intact.The initiative, he said, is aimed at offering subscribers the opportunity to partake in its secured real estate developments.
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