This Is Why We Think 2017 Will Be A Promising Year For Indian Brokers
The boom in technological innovation is at its peak where selling and buying is happening with just a click of the mouse. Buyers are turning their back from the traditional way and opting for advanced mediums. In a property market, a broker is a person whom very few would like but do avail of his services at some point. If one aims to buy, sell or rent their property, the need for a broker is inevitable.
In the near future, it is speculated that a brokers' job can be easily replaced by artificial intelligence computer algorithms. How true can this be?
There is no doubt in it that many players from the real estate market go for 'no-brokers' option to avoid any kind of disruption from the third party (i.e. a broker). A broker-free deal is preferred by mostly urban dwellers who are more technology friendly and have less time to go to a brokerage firm. But if we see the Tier-II and -III cities' situation, the technology-driven property buying is still far behind or even if it is popular, the traditional way is often considered far more reliable.
Resale property was the strong-hold section for brokers as they understand the property market so well. This situation is prevailing in the tier I cities as well. The smaller cities (largely tier III cities) where group housing has become popular, buyers still go with the traditional way of approaching a broker first. “We strongly feel that post interest rate cuts; there would be a substantial demand for residential group housing. This would be a good time for end users to choose from ready-to-move-in projects as they would end up saving on the service tax on the property. This way the smaller cities will see brokers' demand swinging in that direction,” says Kaushal Nagpal, Co – founder, BookingKA₹. Now the demand for brokers will not only be restricted to resale properties but also at the same time ready-to-move-in flats will witness fair amount of property dealing happening through brokers.
In addition, Nagpal gives an overall picture of the real estate sector and points out, “Indian real estate market is going through labour pain and the only respite can come from sharp decline in the rate of interests. RERA would build confidence among customers.”
Brokers' take home
It is very tough to mention the accurate amount of a broker's take home as it varies from property to property and region to region. As Vikas Sahani, CMD, Property Guru points out, “The commission factor of brokers is fixed and hence would be fixed even for the upcoming times as well. They charge a certain percentage of the sales proceeds from the buyer and an almost equivalent amount from the developer. This will be regulated in a much more organised manner in future ensuring no undue advantage is taken of homebuyers.”
Is 2017 promising for brokers?
“2017 will indeed be a promising year for Indian brokers because post-RERA, it would ensure filtration of a lot many small time brokers who were maligning the image of the sector. Also, with the sector getting restructured, a lot of good can be expected out of the sector for the brokers,” says Sahani.
What should you look forward to?
Kamal Batra, Chairman, Buniyad Group points out, “Registration of brokers will become an essential component once RERA is implemented. Business was at its peak during the festive seasons but next year onwards, we are expecting a steady flow of customers as the market is flooded mostly with end users.” Real estate market will witness involvement of many investors who prefer investing a huge amount in property buying. But the coming year has something contrasting to suggest. Batra also mentions, “Investor driven markets have taken a backseat and this will help the end users be always on the profitable end. Also, with the petty investors exiting the market, lending will be taken care of by banks and other more organised investment firms who will not exit projects in an unplanned way and create an unnecessary burden on developers.”
How are brokers making their presence felt in a technology-driven urban area?
There are near about five lakh real estate brokers in India who presently use limited technology medium to exchange information. Similar to how developers used the online path to grab a hold in the property market, the broker community is seen aligning and accepting the technology in the process of building customer relationship stronger.
India's broker community is quite large yet an unsystematic workforce. As the demand is increasing and requirements have far outgrown, the mobile application BroEx is developed to offer brokers superior scalable product. This is a new vision for the Indian brokers that will connect and make them share information of all kinds of properties including inventory and consumer needs. By using such kind of mobile app, brokers will be able to access accurate sale and rental listings and this will make them close deals much quicker. In the coming year, the real estate market should be seeing and experiencing more such developments for the brokers in the technology driven market.