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.