Brokers demand 1% hike in brokerage

Property brokers across the city have demanded that they be paid an extra one per cent of brokerage and many builders have agreed too. Currently, brokers are paid two per cent of the total property deal, the new demand is for three per cent.

Meetesh Sugla, promoter of Mera Ghar, a real estate company, said, "Desperate situations call for desperate steps and this is one such step. There is an oversupply in the market and everyone wants to go ahead of the other developer. Hence we agreed to pay an extra one per cent to brokers as they are an integral part of our industry."

Vikram Mehta, president of Confederation of Real Estate Brokers Association of India, said, "Our work has increased and we have informed the developers about the same. Many of them in most parts of the city have agreed too."

Dr Samantak Das, Chief Economist, Knight Frank India, an international property consultancy firm, said, "Developers have to give an extra per cent because they have realised that the market isn't like it was in 2010. The inventory has increased too and brokers can sell it, hence the higher brokerage is acceptable to developers."

BROKER CHANGES

• Five years ago, brokers had hiked their brokerage from one to two per cent.
   
• Seven years ago, they decided to be called realtors, several changed their company names to realtors.