adminIn an interview, Estate Agents Council chairperson Mr Oswald Nyakunika said demand for property on the market was still very low.
“Activity on the country’s property market remains subdued and demand is being hampered by the current cash or liquidity crisis. Not much has been happening as a result of the failure by financial institutions to give and forward long-term loans and mortgages.
“As a result we are selling residential properties mostly by deed of sale in the absence of mortgages,” said Mr Nyakunika.
He said business in the prevailing environment was very slow such that any agent selling more than five properties a month was doing very well.
Mr Nyakunika also said the sector had only achieved a 10 to 15 percent escalation from last year’s figures due to the crisis of confidence and liquidity challenges they had experienced.
“Estate agents are feeling the pinch but what has kept most of them afloat is the fact that they are dealing with essential services like houses and accommodation,” he said.
He said one of the biggest challenges was lack of meaningful development as there was need to direct resources into the sector as well as encourage investment.
Mr Nyakunika said there was a significant increase in registered estate agent firms and that brought with it stiff competition.
“There is a significant increase in the number of registered firms and that creates competition for the few customers available,” he said.
Mr Nyakunika challenged players in the property sector to develop technologically for them to grow and align themselves with global trends.
“For players in the property sector to grow, they should develop technologically and as such computerisation will enhance capacity,” said Nyakunika.
Online Reporter