Unlicensed agents eat into the real estate business

Despite the boom of the real estate […]

Despite the boom of the real estate market in recent times, Expert Kunda Hara has revealed that the agents are not benefiting much due to the increase of illegal agents.

 According to reports, the unlicensed agents charge below the prescribed rate, which in turn attracts a part of the market.

 Speaking in an interview with the Zambian Business Times (ZBT), Mwansa Hara, who is a senior consultant at Blvck Realty Consultants, called on ZIEA to take proactive steps to sanitize the market.

“There are illegal agents that are taking that business; we don’t get that much money. It is definitely going to the illegal agent who is not registered and paying rent and other bills, which we are incurring,” he lamented.

 Some illegal agents even secure high-end property deals. A status quo that is concerning for the unlicensed operators who invest heavily in licenses and many more formal requirements.

 However, one area that experts believe has potential returns is boarding houses, as more and more universities and colleges have minimal spaces.

But Hara revealed that most estate agents have shunned taking part in the market due to the lower returns.

As most of the property owners are reluctant to approach agents because the properties are self-advertised, Hara said.

Meanwhile, construction led to the real estate business drastically taking a hit, as investors were not committed to the projects. There is expected change towards next year.

Article by Samuel Mutale