Even during the recent economic downturn, certain development projects have been successful. The field of real estate can be tumultuous, cautions James Stuckey. When unemployment rates are high, residential home sales screech to a halt and commercial developments are often put on hold, while consumers reduce spending and wait for things to improve.
Here, James Stuckey provides a few helpful tips for surviving an economic downturn in the real estate industry:
- Marketing—Branding is important for real estate development firms, just as with any other company. Work hard to get your name out there using social media and traditional marketing venues.
- Location—In-depth familiarity with a location can make the difference between success and failure in any real estate venture. Some real estate developments thrive even during a recession, James Stuckey has found. Good timing can make all the difference, and studying an area and its residents and amenities offers a developer invaluable information.
- Partnerships—James Stuckey emphasizes the benefits of partnering with real estate professionals who know the area. These partnerships can be invaluable resources for learning about the target demographic of a given project in order to determine the best location to build. A high-rise luxury condo development in a low-income area is often a bad idea, for instance, but if a developer intends to revitalize an area, being at the upturn of a trend can make such a project successful.
In conclusion, when it comes to real estate development, nothing replaces experience for predicting the market. However, with careful planning and a research, a developer can find success in any economy, says James Stuckey.