Make off-plan work in affordable homes bid

Increasing complaints over missed completion timelines and lack of information on final products in the off-plan housing market points to a gaping hole in customer service in the real estate sector.

Customer trust has been eroded and the risks are high for the sector, which will experience even slower growth with the subsequent effects hitting the already battered economy hard.

One of the key pillars of the government’s ‘Big Four Agenda’, delivery of 500,000 affordable housing units, will be interrupted due to low private sector support and output.

Sadly, it can only manage 50,000 units annually. The challenge can only worsen if the trust issues persist, with Kenyans, who will not realise their big dream of owning a home, the biggest losers.

Off-the-plan houses is the best solution to fixing the housing gap because they offer a comfortable entry point to home ownership. But players in this segment must change focus and strategy in customer service management and culture.

A recent study by Sagaci Research and McKinsey sho

Kenya needs to put up about 200,000 houses each year to fix its low-cost housing shortage of two million units by 2030.

ws 60 per cent of Nairobi residents were considering buying a ready-to-occupy apartment over off-plans due to concerns on developer reliability.

Although that shows complete houses are another option to home ownership, it’s not currently the best option when economic and aesthetic value aspects are placed on the weighing scale.

While putting money on just an architectural plan has been considered risky, off-plan arrangements offer aspiring homeowners a lifetime opportunity to get a dream home at the lowest cost. A buyer only needs to pay a small percentage of the overall property cost and clear the balance in flexible instalments as their investment value grows.

Prospective homeowners also have a leeway to choose or manipulate designs of their choice and the location that they deem most ideal for them. They can also lock in price, so that when property prices skyrocket or the supply of cash in the economy diminishes, the market trends don’t affect them.

For instance, the recent wave of retrenchments has significantly eroded the purchasing power of most Kenyans and it will be very difficult for prospective buyers to consider complete properties. The value of properties will go higher and out of reach for many, especially after legislators failed to block the return of expensive bank loans.

The only viable option now is to accelerate activities in the real estate sector and support the affordable housing agenda. And to avoid economic slowdown, leverage on off-plan arrangements.

Let all players in the sector start involving prospective buyers in the entire construction process. They must anticipate and appreciate the vital voice of customers, who will be the main owners of the property, and open feedback systems for further improvement in service provision based on comments, compliments and complaints.

Also important is how they engage and interact with prospective homeowners during crises and signing off of projects. People judge an experience based on the most intense moments and its end when one is offering solutions.