5 strategies for real estate developers to deal with unsold apartments
Real estate is counted as one of the most intricate industries. Reason being huge amount of investment involved as well as the legal complexities. All these factors contribute to make this a very precarious business. Unsold properties are considered huge debt. Unsold properties block cash flow in the cycle. The investment gets blocked and money is not recovered.
Calculating the risk involved in this scenario, here are some strategies which can help real estate developers to deal with unsold properties
1. Don’t let Inventory become a cash flow problem
It is the only sector where the product takes almost three to five years to reach finished stage. In all that time the investment is congested. If the property remains unsold for years, then the investment is irrecoverable. This situation might hamper the cash flow and as a result, there can there are many financial institutions that can help you out to resolve the issue. Some banks do provide loans worth 18 to 20% against completed property depending upon the public image and project prospects.
2. Convince the buyer
Both buyers and developers are on the opposite side of the same coin. They have much to win and much to lose as well. Developers should convince the buyer that they should invest in fully constructed properties rather under construction properties. If they invest in finished projects, then they will get Tax benefits as well as they also got spared from rent, if they stay in rented property.
3. Marketing strategies
The level of competition has amplified in real estate sector over last two decades. Therefore, developer has to come up with new and innovative strategies to woo the customer. A specialized work nforce need to be engaged for this task who can convince and direct the target customer towards your project.
4. Social media presence
Social media plays a vital role in sales and marketing. If you don’t have a presence in social media, then people will hardly get to know about you. Almost every three out of four spend ample amount of time on social media. You can get a lot of targeted customers on this platform. Furthermore, the amount of investment that you spend on social media marketing is very minimal as compared to other marketing tools. The results derived are more than ordinary.
5. Real estate portals
There are many property portals such as 99 acres.com or magic bricks.com. Developers can upload the details of their unsold properties. This is a sure short way to get buyers for your properties. At present buyers prefer to browse these sites to get to purchase new property.
Unsold properties are really a big burden for developers. However, these strategies will surely help to recover the investment employed in unsold properties.
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