Ethical real estate prioritizes integrity, transparency & community impact, transforming property dealings into responsible, inclusive & sustainable practices for the future
Pradeep Biswal
The real estate sector contributes around 7-8% to the GDP of India. It is estimated that by 2050 it will rise to 15%. But very often, we encounter unethical practices like fraud, cheating, and malpractice in this sector. The real estate, at its core, is not just bricks and mortar; it’s about homes, investments, and communities.
In a world increasingly focused on the concept of social responsibility, the concept of “ethical real estate” has emerged as a fundamental principle in the real estate industry. But what exactly does ethical real estate mean, and why is it so crucial for buyers, sellers, agents, and developers alike?
Ethical real estate is built on a bedrock of integrity, transparency, and fairness in the sector. It’s simply about conducting business in a way that respects all stakeholders, upholds legal and moral standards, and contributes positively to society and the environment.
Transparency
This is perhaps the most fundamental principle. Ethical real estate professionals provide complete and accurate information to all parties. This includes disclosing all known defects in a property, clearly outlining commission structures, and avoiding any misrepresentation of facts. For buyers, it means being truthful about financial capabilities; for sellers, it means an honest portrayal of their property’s condition.
Non-Discrimination
Ethical real estate dictates that all individuals should be treated equally, regardless of race, religion, gender, sexual orientation, disability, or any other protected characteristic. Discriminatory practices, such as “redlining” or steering clients to specific neighborhoods based on demographics, are unequivocally unethical and often illegal. This extends to fair pricing, avoiding predatory practices, and ensuring equitable access to housing opportunities.
Client-Centric
An ethical real estate agent prioritizes the best interests of their client above their financial gains. This means providing sound advice, even if it means a smaller commission, and never pressuring clients into decisions that aren’t right for them. For developers, it means designing and building properties that truly serve the needs and well-being of future occupants.
Environmental Responsibility: With increasing awareness of climate change and sustainable living, ethical real estate now inherently includes environmental concerns and considerations. This can range from promoting energy-efficient homes and green building practices to developing properties that minimize their ecological footprint. It also involves responsible land use and development that doesn’t harm sensitive ecosystems.
Community
Ethical real estate professionals and developers recognize their role within the broader community. This can manifest in various ways. Contributing to solutions for housing shortages and promoting diverse housing options.
Investing in projects that improve local infrastructure, create jobs, and enhance the quality of life for the residents.
Respecting and integrating historical and cultural elements into the fold of new developments.
Thoughtful planning and development that minimizes the displacement of existing residents in the locality.
Ethical practitioners are knowledgeable and stay updated on market trends, legal regulations, and best practices. They invest in continuous education to provide the highest level of service and advice to the clients.
The Benefits of an Ethical Real Estate are many.
For Clients (Buyers and Sellers) it is Peace of mind, trust in the transaction, better outcomes, and a feeling of being respected and understood.
For Real Estate Professionals, it is an enhanced reputation, increased client loyalty, sustainable business growth, and a sense of pride in their work.
For Developers, it is a Positive brand image, reduced risk of legal issues, smoother project approvals, and increased demand for ethically built properties. For communities, it is Sustainable growth, improved quality of life, preservation of cultural heritage, and greater social equity.
There are many Challenges to achieving this.
While the benefits are immensely clear, the real estate industry can sometimes be perceived as a cutthroat environment where profit motive outshines other ethical considerations. Challenges to ethical practice include intense competition, pressure to close deals quickly, and the temptation of short-term gains over long-term integrity.
Overcoming these challenges requires many measures.
Governments and industry bodies play a crucial role in establishing and enforcing ethical guidelines. In post post-RERA scenario in our country, there is a wider scope to develop ethical practices and standards in the real estate industry with active participation of the stakeholders.
Continuous education for professionals and raising awareness among consumers about what to expect from ethical real estate practices.
Leading real estate firms and associations champion ethical conduct and set positive examples.
As consumers become more informed and socially conscious, their demand for ethical practices will drive the industry towards greater responsibility.
In conclusion, it may be said that ethical real estate is not just a moral imperative rather it’s a strategic advantage and a cornerstone of a healthy, sustainable real estate industry. By embedding principles of transparency, fairness, and social responsibility into every transaction and development, we can build a future where real estate serves not only as a means of business but also as a catalyst for benefiting the communities. The RERAs across the states can significantly contribute towards promoting ethical standards in the real estate sector through proactive engagement with the promoters.
(Pradeep Biswal, retired IAS Officer, is a bilingual poet writing both in Odia and English. His poems are widely anthologized. He is also an editor and translator of repute. Views are Personal)
