The real estate industry is one of the most flourishing business options and thus attracting many young individuals to launch their startups in this sector. Property advisors are also giving various directions in real estate projects. In spite of all that is being done by these start ups and the evolution that they have brought, the amount of problems and challenges that they have to deal with has not suppressed by any means. Be it the mere competition or making plans to bring the buyers and sellers on one platform, there are many challenges that these real estate startups have to deal with. Here is a list of the biggest challenges they have been facing in the recent times and how they plan to deal with them.
1. Getting real estate business online is not easy
This is one industry where one deals with big amounts of money and therefore a buyer will not just “add a property to the cart” and make a purchase. Moreover no matter how modern a person is, they would always have some kind of doubts when it comes to investing in properties through these online platforms
2. Involving the real estate agents
Agents have been in the market for ages now and more or less people are highly comfortable paying a commission amount to them rather than dealing with the other party themselves. For a real estate startup that focuses on bridging the gaps between buyers and sellers, it is very difficult to put these agents aside and convince people to directly make trades.
3. Technological advancements don’t really make a difference
Investments in the properties are always big decisions that one makes and therefore people are not willing to try new things as they consider them risky. No matter what kind of benefits of ease of usability you offer, they would not really be interested until it is something that genuinely forces them to think.
4. Difficult rules and laws
Although many amendments are made in the laws for the startups, things are still not easy for the real estate startups. Along with all the above challenges you face and the huge initial investment that has to be made, you get business on a slow pace and the initial formalities take a lot of time. You also have to be cautious about what can be displayed since there are rules about it as well.
5. Competition from global players
It is in this decade that the trends of startups strikes in most of the parts of the world. But there were a few players in the real estate sector who saw this trend coming way before and established themselves like no other company could. For instance a company that started in the United States two decades ago is now eyeing the global market thus giving a tough competition to those who have just started their business.
6. They still don’t solve problems as expected
Real estate is one sector that has the capacity to turn the tables for the economy on global level but it deals with many problems. Illegal constructions, domineering agents, lack of insights, etc are some of the issues that are still not tackled the way they should.
For anything new that comes in the market, people often eye it with suspicion but in spite of that the real estate sector startups are doing well and gradually climbing the ladders of success. Good growth for luxury villas & apartments in real estate. Hopefully they will come up with new ideas and strategies that suppress these challenges and help the sector rise to an even higher level