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How to Revolutionise our Real Estate Industry

  Jun 29, 2011
 

It is apparent that our real estate industry has been on a growth spurt over the past few recent years, hitherto, indicated by the numerous commercial and residential buildings as you drive to or from work. It is also clear, hearing from our local news, of lives being lost through collapsed upcoming or completed and inhabited buildings because of poor construction principles.

The real estate industry is also a key driver of economic growth and journeying towards a stable one at that, because of the lucrative opportunities that exist therein, following an exodus of rural-urban migration. Also, thanks to the new constitution, we are seeing an effort to deploy urbanization and what it carries, towards the rural areas of this land. Over and above this, the ongoing tremendous upgrade of our roads will lead to the deconcentration of businesses within the CBD (Central Business District) and moving towards its outskirts.

Strathmore Business School has endeavoured to educate leaders in this industry, to ensure its sustenance through best-practice knowledge and skills.

Good Management of the Real Estate Industry

Speaking at a breakfast briefing on Thursday, 23rd July, Dr. Laila Macharia of Scion Real and Program Leader of the Real Estate Executive Program (REEP) stressed the need for effective management of our real estate industry to place Kenya at an enviable economic position. She took the participants through the issues that REEP will address, towards producing great leaders who will revolutionise this promising industry. Mucai Kunyiha, MD of Cooper Brands (K) Ltd., a seasoned real estate developer and alumni of REEP, described the program as motivating and life changing, having acquired insights on the projects NOT to take up – which if he had, would have been failures, hence losing a lot of money. He said that it is easy for a player in this industry to get carried away with the dreams of what the real estate industry awaits them, yet technical skills and know-how are important to make them realize these dreams. Even though he is a seasoned practitioner in this industry, Mucai still felt the need to acquire skills in negotiation and management of his properties for better profits, which he acquired by attending this program.

Addressing the Poor Construction Problem

Project management courses generally talk of managing projects; from a new business, to developing a school etc. Construction Project Management (CPM) therefore addresses issues intricate to construction principles in as far as negotiation with suppliers of materials, contractor, surveyor and architect selection, dealing with suppliers etc is concerned. It teaches how to acquire high quality materials that will yield your desired completed building while you saving you millions of money. Cheap technical knowhow, building materials etc, are key contributing factors to the menace of collapsing buildings, leading to unnecessary deaths; deaths that could otherwise have been avoided if the responsible parties clearly thought through the planning of the project. Hastiness in choosing quacks for your project managers, in the hopes of saving you money can cost you lives. CPM will look at ways that will save you money to enable you to acquire qualified project managers who will manage your construction effectively and efficiently.

Laban Rono, Head of facilities at Chase Bank says CPM has changed his thinking completely; he talks of initial quoting the cost of materials at 81M but after acquiring negotiation and supplier selection principles from his learning during the program, was able to purchase the materials at 33M – a whopping 58% saving. This is yet another real example of the benefits that are accrued from the CPM program, the driving example being that of the ongoing Strathmore University/Business School construction project, which should have initially cost the University 1.5 Billion but managed to save about 50% to bring the cost down to 750M. CPM is lead by Raul Figueroa, Project Manager of the ongoing Strathmore University/Business School project.

 

Click here to view Real Estate Executive Program Presentation

Click here to view Construction Project Management



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