Real Estate Portals Turn Spoilsport for Brokers
Bangalore: Traditional property brokers in India are finding it hard to continue their business because of rising competition from real estate portals, slow home sales, passive demand and uncertain economic environment.
This current market competition has left several property brokers out of business, even those who had witnessed good growth when the real estate was in booming state. Now, direct sales and the services offer by real estate portals are catching fancy to individual sellers, as portals are ready to facilitate free deals. Adding to it, this current market situation has drive down the application numbers for realty broking license, reports Tasmayee Laha Roy, Mansi Tewari and Divya Sathyanarayanan of Economic Times.
With the help of portals, property builders are now directly approaching investors and end-users through in-house marketing teams, which in turn helping builders to save around 3 percent of property dealers’ commission. Gradually, developers have started using direct marketing initiatives like text messages, e-mails to push their offerings into the vast market.
Still developers who are working with brokers have reduced brokerage charges to 3 percent-4 percent, earlier which was around 6percent-8percent. Also, many developers have withdrawn charges on preferential locations that were promised to brokers earlier.
Gaurav Gupta, joint secretary of Raj Nagar Extention Association, said: "With the slowdown happening in the market, most developers are now getting into direct sales and cutting down on the cost of the brokerage."