A framework for property developers to survive in a recession

Recession is considered as a major threat to the economy as it slows down the economic activities. The property development sector is extremely responsive to these economic conditions. Thus, it is crucial to understand causes, effects and strategies for property developers to survive in a recession without any ill effects. Thus, this research aimed to develop a framework for property developers to identify appropriate survival strategies in a recession. A comprehensive literature review was conducted in this research to achieve the above mentioned aim. The results of this study indicated that recession prompts negative impacts on the property development sector resulting in unemployment, low demand, low production, low revenue, decline in resources and high level of competition. According to the results, the survival strategies were classified into short-term and long-term strategies. The short term strategies include: implementing management tactics; cut down of operating costs; keeping financing lines set up; timely repayment of debts; setting vital new objectives for the future; undertaking short-term developments; specialisation in favoured market; and renegotiating contracts. The long-term strategies include: retrenchment; restructuring; investment; and ambidextrous strategies. Similarly, attention should be paid to predict any changes in the economic environment that can influence property development activities and it is necessary to carefully evaluate the investment activities to increase sales, profits and market shares of property developers. Preparing for a crisis is doubtlessly the ideal approach as it can facilitate both survival and growth. Thus, the property developers can implement these suggested strategies in their businesses to enhance their practices.