How the reputation of developers is formed: the experience of the Association of Western Ukrainian Developers
A developer's reputation is built up over years, but one headline in the media is enough to make this trust disappear. Why the real estate industry is particularly vulnerable to information chaos, how generalizations affect the market image, and what tools help developers maintain their reputation - told in the in the podcast "Yuriy Martyniuk, Executive Director of the Association of Western Ukrainian Developers, told in the Real Estate Code podcast.
Clickbait instead of analytics: how social networks affect reputation
In times of information noise, social media and some media outlets chase clickbait headlines, generalize cases across the industry, and rarely delve into the essence of the problem. Therefore, the word "developer" often appears in the public space only in the context of scandals and sensations. When emotional statements by public figures - officials and politicians - are added to this, the number of generalizations only increases and turns into accusations of the entire industry.
Another factor is low "information hygiene". Instead of checking documents and fact-checking, people often trust Facebook comments. As a result, a negative impression is formed and trust in the business is lost.
"Reputation is a huge element of business strategy. And today we can clearly say that if there is no reputation, there is no trust in the brand," says Yuriy Martyniuk, Executive Director of the Association of Western Ukrainian Developers.
Sales, cost, and even access to financing for developers directly depend on their reputation. Large developers think years ahead and are recognized in the market precisely because they have been working with trust and reputation for a long time. After all, it can be lost in one rash action or one loud headline.
According to Yuriy, private property and investments in the construction sector are still poorly protected in Ukraine. Even when a company goes through all the stages of inspections, obtains the necessary permits, and complies with the law, there is no guarantee that the situation will not change at any time. The documents can be canceled after millions have been invested in the project and investors' money has been raised. For businesses, this means years of litigation, large losses, and a ruined name.
"Even worse, the officials who issue or approve documents do not bear any responsibility for their decisions. Even if their actions are later found to be wrong, it is still the business that has to answer, not those who made the mistake.
As a result, clients invest money in an object that is legal today, but may become "illegal" tomorrow and risk losing everything. Because of this unpredictability, people stop trusting the market in general, and all developers suffer," says Yuriy Martyniuk.
How to build credibility in the market
From the start of construction to commissioning, the project is constantly updated as customer requirements grow and change. Therefore, analyzing the market and its trends is something that no developer can do without. It is necessary to study the market, listen to investors' requests, try to understand what needs may arise in order to be ready to fulfill them.
It is important to constantly improve the product itself. After all, when choosing who to buy a home from, people pay attention not only to how the company communicates with its customers and positions itself, but also to how it has done business before, what projects it has implemented, what houses it has built, and so on.
Social projects are also part of any large and conscious company. In times of war, this especially affects reputation.
"Our companies, in particular those that are members of the Association of Western Ukrainian Developers, are companies with great social responsibility. Nowadays, a lot of effort and money is spent to help the army. Business has always responded to crisis needs that arose in communities or the country as a whole," says Yuriy Martyniuk.
A recent case: one of the most tragic air raids occurred in Lviv last year, during which dozens of houses were destroyed. At the initiative of its members, the Association proposed to join the reconstruction and restoration of two houses on Mikhnovskoho Street. This was done quickly and efficiently enough: people were able to return to their homes in three months.
On the importance of unification
Industry associations are becoming a platform where developers, who are often competitors in the market, can talk about common problems. Structures such as the Association of Western Ukrainian Developers or the Ukrainian Association of Developers perform an important function: they create clear rules for the market, share experience and solutions in various crisis situations. This is a way to make the market more understandable and united, as well as to convey the industry's unified position to the government and society.
"Such formats, which bring together seemingly unrelated competitors - people who de facto compete with each other in the same market - provide an opportunity to exchange information, discuss problematic cases, and explain the position to those who influence market development," emphasizes Yuriy Martyniuk.
Reputation is the foundation without which a company cannot develop. It is formed over years, and it can be lost in one clickbait headline. That is why it is so important to gradually build trust. Only then will the company be perceived as a reliable and valuable player not only in the industry but also in society as a whole.
