There have been a number of articles recently published describing the pressure that some real estate agencies are feeling as a result of the current correction in the Dubai real estate market. There have also been instances of real estate brokerages laying off a significant number of their staff or closing their doors altogether.
For some, survival was a short-lived ride on the post-Global Financial Crisis (GFC) wave, and the recent instances whereby entire businesses have struggled to continue surviving begs the question: what are the determinants of success in today’s market climate?
The answers are as simple as they are difﬁcult to attain. They remain elusive for many companies; but those establishments that understand them, capture them, develop them and practice them stand a greater chance at enjoying unbridled success.
It may be a cliché, but a primary ingredient essential to success is passion. Without passion, you cannot be successful in this business. Any real estate operation must attract, develop, motivate and retain a passionate group ofprofessionals, and any serious client will recognize this. This is a people’s business, and without a passionate and professional team, survival will be impossible.
Experience is critical. We are in a business characterized by high capital requirements, a broad spectrum of risks and deep emotional involvement. Failure cannot be an option. That is why I know I am fortunate to be part of an executive team with over 20 years of experience in the Dubai real estate market. As we are all aware, the industry has been evolving rapidly and still remains one of the most dynamic in the world. The GFC did show us that this is not an industry for those who don’t know what they are doing, and to be able to draw deep on experience is invaluable.
Being ﬂexible and developing the capability to adapt is a prerequisite to success, particularly in a market that is changing so rapidly. The GFC was a period of rapidly changing circumstances, which bore unprecedented challenges requiring immediate yet innovative solutions. This was a difficult period, but also one of great learning, which put those who were ﬂexible and adaptable in a great position to capitalize on the opportunities that were to eventually emerge with the recovery. It was no easy task and it required a brutally honest assessment of individual capabilities, as well as the capabilityof the organization to continue to provide the services that clients required, but within a totally new environmental context emanating from what was essentially economic turmoil.
But it is a culture of innovation that separates the “thrivers” from survivors. There is no doubt that tried and true practices that worked in the past have required an overhaul in order to address new realities, and create and maintain a discernible edge in a highly competitive market. This is what really differentiates those that have thrived in the post-global recession period, from those that managed to survive only to falter as a result of the latest market correction. A key learning from the GFC is that innovation relevant to circumstances will always prevail regardless of the situation. Whether the market is hot or cold, innovation will always provide the competitive edge.
If you look at the industry today and compare it to the days of 2008, it has come a long way. The advances made in the legal framework, regulatory infrastructure and overall governance typify a market that is rapidly heading towards full maturation and the type of sustainable profitable growth that all stakeholders in the industry have been seeking.
As professionals who care about our business, we must continue to embrace and support any change that will improve the health of our industry. Because it is the health of our industry that really matters most. Those of us who are around to tell of our experiences during the GFC will recall that the initial objective was pretty basic: to survive in an environment that nobody in the industry had witnessed before and, in order to survive, we needed to adapt, innovate and develop as individuals and organizations. Those that didn’t fell by the wayside, for after all, that is what a recession is all about… survival of the fittest… and it is the fittest that will thrive.