News & Views on Indian Real Estate

Monday, September 01, 2008

It’s party time for Realty Brokers

Realty brokers are making merry amidst the turmoil in the Mumbai realty market. Thousands of real estate brokers are being wooed by builders with added incentives such as parties, mujra parties and picnics. The slowdown in demand among buyers has prompted builders to woo brokers. Brokers in Mumbai usually charge a two percent commission on every transaction they facilitate. They have been complaining that builders take a long time in paying their commission. According to Mr. S.V. Maheshwari of Maheshwari Associates, the scenario is different now, as builders are prompt in paying the two percent commission. In fact, they are also offering three percent commissions to brokers who bring in five customers. "In a booming market, customers would approach builders after seeing advertisements. However, with this slump, builders have realized that they need to keep in touch with men who actually know and have personal contact with customers," said, Mr. Anand Gupta, of Builder Association of India.