“IF SOMETHING IS TOO GOOD TO BE TRUE, THEN IT PROBABLY IS” – – LAMUDI BOSSAkua Nyamekye
The real estate industry in Ghana, in recent times, has seen tremendous growth with estate developers rapidly springing up in a bid to provide estate properties for Ghanaians. With an increasing demand for affordable housing and property ownership in recent times, the services of real estate agents and developers could not have come at a better time.
With such an overwhelming demand, there is the need for a platform that would provide both property owners and potential buyers, an avenue to transact business with ease and convenience while protecting the interest of both parties.
Lamudi, a global property portal focusing exclusively on emerging markets, provides the perfect online platform for those interested in real estate business transaction.
With an online presence in 28 countries in Asia, the Middle East, Africa and Latin America and with more than 500,000 real estate listings across its global network, the leading real estate marketplace offers sellers, buyers, landlords and renters a secure and easy-to-use platform to find or list properties online.
Lamudi also provides information and research on the real estate industry in Ghana. One such research, conducted recently, will be discussed during the company’s real estate conference scheduled for the 26th of November, 2014.
In an exclusive interview with Business Day, Managing Director of Lamudi, Akua Nyame-Mensah, speaks on the real estate industry, its challenges, the way forward and the role Lamudi plays in fostering a serene and secured environment for business interactions in the real estate industry.
What is Lamudi all about?
Lamudi is a membership based vertical classifieds. What we do is provide services to agents, developers, individuals, property owners who are looking to rent or sell their lands, commercial property or residential property online. What we are is an advertising platform that allows them to do that and we provide them exposure in many different ways primarily through our website.
We also have a journal and we also do social media as well and through all these avenues we provide the agents and developers and individuals the opportunity to reach people who are interested in finding their ultimate dream property.
We also have a Lamudi app and mobile website as well. We are really trying to make sure that our platform is available on as many form of devices so people can make informed decisions.
Being an online platform, how has the business been in Ghana?
The truth is that a lot of people are going online in Ghana. Now we have a lot of people who are using mobile devices to access the internet so it is becoming a lot more common for people to begin their search for gadgets or properties online.
It is really the first place for people to really start looking for potential agents to begin that search for them so it is really becoming important that you are on a website that provides the best platform and services.
When we first started, we had a website with nobody really listing but rapidly it has grown, simply because people in Ghana are beginning to understand the essence of doing business online. This is mainly because we respond to our customers’ needs.
What kind of service does Lamudi provide its customers?
Primarily, what we do is provide advertising space. We have our members and what they usually want is some level of exposure. We allow people to host their properties on our website as well.
With hosting properties on our website, we expect certain details from them. We ask for as many pictures as possible, the location of the property and relevant information that visitors to the website would be looking out for.
We also provide the opportunity for agents and property owners who host properties on our website to do some direct marketing on an actual agent or developer webpage. They have the opportunity to showcase their logo, write a bit about themselves and we give access to their websites so people can learn more about the agents or developers.
Who are your target audience?
We want everybody to come to our website. We want Lamudi to be a one stop shop for anybody who is looking for property in the market and in Ghana.
We seek to reach those who have disposable income. We advertise on Facebook and places where we believe we will be able to reach such people.
How affordable are the properties listed on Lamudi?
Affordability wise, we had some accommodations that were going for less than hundred (100) cedis a month but it is mostly dependent on who is listing, what they put up, what they take down and what is available or not.
We do not have direct control over how much a product listed on our site would cost but we have control over the level of quality standards of the properties listed.
How has the industry been like since your inception?
It has been really interesting. The cedi’s depreciation has affected the industry probably not in the best way because a lot of the industry rely on foreign materials. For those who import their materials, the depreciation of the cedi has made it quite difficult for them to deliver.
In terms of the agents, the depreciation of the cedi has made it more difficult forto people to afford houses such that, what would have been bought initially is now being rented, but since the cedi is picking up again, I think very soon things will go back up.
How is the real estate industry impacting on the economy?
The real estate industry has the opportunity to provide jobs for those who are into construction. Ultimately, if we are able to create a local economy around the materials for construction, that will be really great for the economy as well. There is really a lot of opportunities for local companies to become involved in the industry and ultimately impact the economy.
Has there been enough support for the industry from government?
There has been a call for multiple things and I believe there are a lot more structures that can be put in place to support the real estate industry. I believe the government is currently working on a housing policy which I think will be great in terms of trying to figure out the best ways to go about social housing and affordability of estate properties.
I think very soon there will be a call for trying to structure the market in terms of brokerage firms and agents. That will put into place some strict guidelines on how to rent or sell and the people involved in the process. This will lead to a reduction in fraud.
What are some of the biggest challenges facing the industry?
The fact that the process of obtaining land is not very straightforward. The cost of land is really what is driving the cost of a lot of the properties. Also the fact that a lot of people are misinformed on the process of obtaining land.
People do not really know that technically, you do not really buy land outright but that it is leased, especially in the Accra area. It is important to try and ensure that the land you have received title to has not been bought over three or four times already.
Capital is an issue as well in terms of developers getting investments that are necessary, especially for developers who might be developing properties that are a bit further away from Accra, where there isn’t much infrastructure.
A lot of such developers end up providing such infrastructure. This simply means the cost of providing such infrastructure goes into the ultimate cost of the property.
So what started off as an affordable project ends up not being affordable. On the consumer side, the fact that interest rates on mortgages are high is also a challenge.
What is your take on the notion that the real estate industry is milking Ghanaians?
The truth is that there is a very high demand for housing such that no matter what, developers will be able to find somebody interested in buying a property. If the demand was not that high, estate properties would have to be top notch and developers would have to differentiate themselves to get people interested.
However, since demand is so high and there isn’t enough structure or regulation in place, some developers and agents unfortunately can get away with not doing things properly.
The Ghanaian consumer also needs to demand certain things. As long as there is really high demand and there isn’t real process in place to ensure that these sort of issues do not happen, developers and agents will get away with things.
What would be your advice to anyone who would want to acquire an estate property?
I think a lot of people fall for things that are too good to be true. If something is too good to be true, then it probably is. It is probably not legitimate. As a consumer, I think we should start demanding things.
If you are dealing with an agent, make sure you ask for any information you need. Make sure at some point, you talk to the owner of the property directly, even if you are dealing with an agent.
Ask the agent for details concerning their charges and commissions for dealing with you. Let them know your time is money and as such you want to see properties that fall within your budget and be very firm on that.
If for any reason you are defrauded, let it be known and call out people who engage in such fraudulent acts instead of concealing the experience.
