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| Cyclic Strategy |
With Nigeria insignificant presence in 8,000
to 10,000 property portals in the world which cater for property deals.
The country has been seen by many analysts as lagging behind in online property
listing segment of the real estate industry. Nevertheless, existing statistics shows
that “the number of renters searching for property online platforms rose to 10
per cent in 2016 – an increase of 5 per cent since 2015, while direct home buyers
also shot up to 8 per cent at the end of 2016.”
Infoprations
has equally discovered that from October 13, 2013 to October 7, 2018, Nigerians
had interest in renting property than buying and selling. Analysis reveals that
bedroom flat apartment was the most searched home category within the property
listing. During the period, Nigerians and other nationals in Akwa Ibom,
Bayelsa, Abia, Sokoto, Lagos, Ogun, Rivers, Edo, Imo, Abuja (Federal Capital
Territory) and Oyo states developed interest in renting apartment or a property
than those residing in other states in the country.
As
the people’s interest in the real estate, especially rent section, increases
existing players are struggling to provide innovative solutions. For instance,
recent analysis by Infoprations
indicates that the leading listing websites or businesses have similar business
and revenue model. The critical website features are also found to be similar.
These
and other needs that are not being met by the players are the reasons new
entrepreneurs and companies outside the real estate industry venture into the
market. Infoprations’ check reveals that some facility management and other companies
in the built environment have entered the market. Recently, Mikano joined the
real estate industry with her Mehcity project launched in Lagos, saying the
voyage to the industry aligns with her innovative solutions and expansion
strategy.
Cyclic Strategy and Breaking of Existing Players’ Strength
The entrance of FM companies
into the property listing market is a means of recycling clients for more sales
and revenue growth. The entry is necessary as businesses need to mitigate the
impacts of the recent economic recession that hit the country. FM companies and
other businesses experienced sales increase and revenue growth uncertainty.
Coming from the industry
that prioritises cost saving and provision of sustainable solutions to
businesses towards effective operational activities, FM companies in property
listing marketing must prove their worth among Zoomek,
Lamudi, Nigeria Property Centre, Private property, Property 24, Hutbay, Castles
Nigeria. Tolet.com.ng now Propertypro.ng, Property index, Lands.ng and Multiple
Listing Site,
Lands.ng, the Multiple Listing Site and Propertypro are the three
players, FM companies in the market need to watch. Within a short period of its
existence, “Lands.ng attained uploading of over 14 million plots of land, more than 250 registered and certified Agents, multiple enquiries
from over 12 states in Nigeria, rich information, dynamic listings, lead
generation forms, access to credible data and much more,” the founder said
recently.
What the Cyclic Strategy Portends
Cyclic strategy is a call for defensive strategy from the leading
players. Entry of FM companies constitutes a strategic threat to their sales
and revenue generation. Players like Propertypro would not sleep and allow the entry to cause
strategic havoc to its 65 percent market share. FM industry is also likely to
begin another war with the Nigerian Institution of Estate Surveyors and
Valuers, (NIESV).
The friction on the recognition of FM as a
separate industry is yet to be resolved. The presence of FM companies in the
listing market would be restricted by the body. In the future, the body is
likely to compel FM companies in the market to join the association’s unit
responsible for coordination of property listings for its Multiple Listing
Site.
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