Of all the major factors behind the ever-increasing prices of commercial and residential undertakings, corruption is something that should never be ignored. Studies have confirmed the fact that the level of corruption within the real estate market is quite high justifying the fact that real estate has become the hotbed for corruption in the recent times. There are a large number of officials in this field who have been found to be involved in cases of corruption.
According to Joe Nahas, Managing Director of Coronation Property, the wrong use of power is one of the most important reasons behind corruption being practiced on a vast scale throughout the real estate market spread across the world. The real estate developers bribe officers for getting pieces of property for development and for getting approvals for their development projects. They pay the officials for doing other things as well. These payments are not made from their own pockets. What the real estate developers do is that they raise the prices of their development projects to make money for paying the bribes.
The real estate developers do not spend a huge amount of money on getting quality materials for their construction projects. This is because they need to make use of available money for paying bribes to the real estate officials and they also need to keep some money as profit. They even bribe the supervisors into paying no heed to the low quality of their construction projects. This is the reason why real estate developers in different countries have been found using bamboos and sub-standard re-bars for lowering the costs of construction. It is only because of this reason that even the newly constructed buildings have quality issues. They also have complaints about housing and living quality. Instances of apartments and buildings collapsing due to the low quality of materials used for construction have also been on the rise in the recent years.
Thus, it can rightly be said that large scale corruption in the real estate arena has struck as one of the major problems that have seriously affected the healthy growth of the real estate market and industry. Governments and authorities in many countries have realized the seriousness of this problem and have implemented crack downs targeting corruption in the real estate market. Different measures have been taken for eradicating corruption right from its roots in the field of real estate. Till date, the prosecutors have been successful in weeding out a few bad apples from this field. However, it seems that more effort needs to be put in this direction with cases of corruption getting increasingly complicated and the amounts of cash involved being increasingly large. The governments in different countries are backed by this unwavering determination to do away with corruption in their real estate markets.
It is important for officials and professionals working in the field of real estate to be duly vigilant about their responsibilities and job duties. On the other hand, the governments in different countries should never underestimate the complexities of the anti-corruption battle that they are fighting. They must act towards improving the transparency of different business deals and tightening supervision for making it difficult for the officials to make the wrong use of their power.