Business model innovation in the real estate rental market in Malta : turning demand and supply challenges into opportunities

Abstract

The rental property market experienced an exponential growth in demand and prices due to an influx of foreigners as a result of foreign direct investment, which also created a „buy-to-let‟ market. Purpose The objective is to examine the relationship between business model innovation and the rental property market to provide insights into how organisations can turn demand and supply challenges into opportunities to achieve competitive advantage. Design Using a qualitative approach, this dissertation was based on three case studies of organisations in the rental property market. Nine interviews were conducted with the directors of the organisations and six customers chosen at random by them. Findings Innovation is imperative in the industry, which is leading to changes in business model structures and the environment. For this reason, the selected companies are making efforts in rethinking their business models in order to keep pace with market trends, competitive threats and shifts in consumer behaviour. Conclusions The analysis determined that new business models, facilitated by technological advancement are essential in the property market due to shifts in customer behaviour and competitive threats. Conventional business models are changing in order to facilitate technological developments, however, the human presence in the market is still essential. Value This dissertation will be of use to real estate agencies and the industry at large. Moreover, this study will gain more importance in coming years when further research on the subject matter is conducted and the industry expands further.