The False Economy of Cutting Corners: Why Professional Market Research is Worth Every Shilling

Picture this: It was a hot afternoon along Kiambu Road, standing on a promising five-acre undeveloped land with a gentleman I shall refer to as Mr. E – one of those well-established businessmen who’s amassed considerable wealth through various ventures – car dealerships, income-generating properties, a healthy stock and bonds portfolio, and being in what one might call “the right rooms.” You know the type. 

There, I was surveying his land with professional interest, mentally cataloguing its potential while Mr. E outlined his grand vision. Like any diligent advisor, I promptly sent him a comprehensive proposal the following day, meticulously outlining the research methodology, expectations, limitations, deliverables, timelines, and the project cost.

And then I waited.

At 5:46pm, my phone rang. It was Mr. E, practically choking on the figures in my proposal. Why are you charging that much for simple research!” he exclaimed, with the particular tone that consultants know all too well.

I’ve been a developer for a long, long time,” he continued, and the only reason I need this document is because the bank and a potential investor need a report before providing financing.”

Ah, there it was—the “just-a-formality” approach to market research – as though we were discussing a simple rubber stamp rather than a crucial investment safeguard.

With the patience of a kindergarten school teacher and adopting my most professional tone, I politely enquired about his thoughts on the proposal itself:

“Are you satisfied with the contents of the proposal?” “Yes, very good document,” he conceded.

“And the scope of work?” “Yes, you have covered it very well.”

“What about the professional experts I’ve included to comprehensively prepare a report that will secure your funding?” “Yes, I was quite impressed with your level of detail and thought to the entire exercise. Well done.”

“Keeping all this in mind, what had you hoped to pay for this detailed service?”

And here it came, the moment of truth: “Now, you know…I know what I want to build and how. I just need a simple document. I only have KES180,000 to pay. For the five acres I want to develop, you just need to propose apartments, nice two bedrooms and three bedrooms, ten floors and we are done.”

I nearly dropped my phone. 

For fellow consultants reading this, we can all agree this ranks among the most insulting statement a client can make. It’s rather like asking a surgeon to perform a heart transplant with a butter knife and a roll of sellotape or telling Nyashinski or Nameless (Popular Kenyan musicians) to just make a hit in nanoseconds.”

Not, let me be perfectly clear – I do respect businesspeople. They’ve weathered storms, learned from failures, and built wealth through perseverance and acumen. But proper research is not where one should not cut corners or cut costs.

Why Proper Market Research is Worth Every Shilling

Allow me to enlighten you on what comprehensive real estate market research actually entails – and why it’s not simply a box-ticking exercise.

Professional research is a critical investment protection mechanism that integrates expertise from valuers, architects, quantity surveyors, structural engineers, estate agents, property managers, financial institutions, contractors, potential investors and other developers. As researchers, we must deliver (but not limited to):

• An independent view of the real estate market (not just what the client hopes to hear)
• Actual market demand and supply analysis (not wishful thinking)
• Identification of factors driving real estate performance in the area (which might not be what one assumes)
• Current challenges faced by suppliers, retailers, occupiers, government and any other relevant stakeholders (not merely what’s obvious)
• Detailed development controls, zoning parameters, soil conditions and regulatory compliance requirements (those small but critical details that can sink a project)
• A comprehensive analysis of the best use for the land based on evidence (not just intuition)
• Testing whether current and past market rentals and sales trends reflect this analysis (rather more complex than “nice two bedrooms and three bedrooms, and we are done.”)
• Identifying strengths, weaknesses, opportunities, and threats (before the first shovel breaks ground)
• Conducting robust financial analysis comparing projected returns against actual market performance (yes, there are developers and professionals happy to share the actual achieved numbers)

This process involves extensive consultation, analysis and considerable back-and-forth that, frankly, cannot be acquired overnight or delivered at rock-bottom prices. Professional market research is both an art and a science that provides insights and depth that help investors objectively decide whether to invest or quietly walk away before breaking both ground and bank account.

The Inevitable Return

Did Mr. E agree to pay the full seven-figure proposed amount?  No, he respectfully declined and found someone willing to take his KES180,000.

And what happened, you might wonder? Well, three months later – precisely as one might predict – he returned. This time, there was considerably less confidence in his voice as he explained that both the bank and a potential external investor had rejected the rock bottom research report for lack of depth and investor confidence.” Like a patient who skipped antibiotics only to develop a more serious infection, he was back – ready to discuss our original proposal and fees.

Are we now in discussions? Indeed, we are. The story of a real estate professional continues – as does the universal truth that proper market research isn’t an expense; it is an investment that pays dividends well before the foundation is poured.

In the East African context, where development opportunities are many but funding remains tight, professional market research is not just recommended—it is essential. Rapid urbanization, evolving regulatory frameworks, unpredictable economic factors, and increasingly sophisticated investor requirements demand less than thorough, professional analysis. 

Remember: The cost of good advise is always less than the cost of bad decisions. Or as we say in consultancy circles: pay a little now, or pay a lot more later. The choice as Mr. E eventually discovered, is entirely up to you.