By Mru Patel, Founder and CEO ePropertyWealth.com
It’s no Longer only about Location, Location, Location
The real estate market in Romania is not much different to any other developing nation. However it has further complications largely due to the cumbersome processes and paper-based, politically supercharged overheads and the delays caused by a red tape culture. Having operated both globally and in Romania for the past 14 years, I’ve been stressing that the real estate market has to be a combination of location, location, location, coupled with technology, technology, technology. WeWork, Zoopla, Rightmove and Airbnb are a few simple examples of how real estate tech is now at the forefront of this explosion in tech investments.
Cut out the Middlemen
I believe progress in Romania will be slower largely due to the “protectionism” of the public sector, banks, intermediaries, agents, notaries, lawyers etc. Change and attitudes towards collaborations are not encouraged by the government as their own processes are so paper heavy and super time consuming. This is the case even for the simplest of processes, never mind cooperations between departments for planning related issues. This makes it very difficult for investors to calculate their return on investment over a period of time, as a lot depends on getting the approvals on time. Often the planning process and its flaws are deal breakers for investors in terms of the costs and the end result can be an expensive product for the consumer!
Real-time data to enable a full end-to-end real estate transactions should be the single goal for this market and its stakeholders. People should NOT be the question here, just productivity and efficiency gains that are merit-based. Blockchain based technology across the whole of the public sector must be explored without the fear of job losses, as surely the role of the government is also to reduce costs and taxes in order to create a better quality of life for its citizens.
Find solutions for existing problems
A major point of concern for the market is that there is a growing lack of skills and this will be a major factor in the increasing price of the property product. I say Romania must accept that it will not be able to entice back citizens who have left the country. I have talked to several Romanians in the UK, the USA, Dubai, Singapore etc. and their main gripe is that even if the local salaries were doubled they still wouldn’t return. This is largely due to the system which really needs to be fixed – from public sector services right through to general quality of life, infrastructure and education for families with children. So if skills are required, I recommend Romania should accept and explore opportunities to import in order to fill those gaps just as UK, USA, Germany etc. have all done i.e. bring in human resources from places like India, Korea, China, Africa, the Philippines and so on.
Quality is a must
Finally developers and investors must produce and implement better quality projects that truly look at whole life costs especially ongoing maintenance and running costs through to ECO, IOT and smart sensors technology, which will enable developers to build and implement properties that are energy efficient as well as manage stock/materials more efficiently to avoid wastage and theft during the construction phase.
The future truly is about technology, technology and technology, in the most useful disruptive transformation in real estate. Applying Blockchain in real estate is a way of simplifying the traditional ways of transacting any property deal. Blockchain real estate transactions are easy, cheaper and time effective. Digital banking in real estate allows you to be your own digital, personal bank, cutting out the middlemen that make the transactions slower and more costly. Technology allows us to raise funds for our businesses from people all over the world, without flying to another continent. Everything is happening within the comfort of our own homes through real estate crowdfunding platforms. Technology opened the door to a bright future, where traditions are changed to make lives easier for all the parties involved in the real estate process. No more wasting of time and money – the most precious resources we have.
Mru Patel is a best-selling Author, having lived and worked in 4 continents, with skills and experience in IT, sales and marketing. He is a serial entrepreneur, public speaker and motivator with a passion in property & wealth creation for investors. Fast Track your Business to Success is the name of his latest book, where the Foreward is written by a NY Times top 10 best selling Author.
Find out more on www.epropertywealth.com.