Slothful realty market is a broker's boon

The slowdown in real estate market is spelling good times for brokers. In most cases today, brokerage has been hiked to 3 per cent and in many cases, brokers are being offered as high as 4 per cent.

Around five years ago, brokers hiked theie fees from 1 per cent to 2 per cent with the developers' consent. Now, most brokers claim they are paid up to 3 per cent and in special cases, up to 5 per cent.

Vikram Mehta, a leading broker, said developers know that brokers can sell their project so they are in demand. "In most cases builders are offering us brokerage of up to 3 per cent and in some cases, more than that."

Incidentally, they are not referred to as brokers any more. In a meeting of brokers from across India around seven years ago, they decided they should be called realtors. But now, the nomenclature is 'channel partners'.

Prakkash G Rohiira of Karma Realtors said, "When it is a purchase from the developer, all brokerage close to 3 to 4 per cent is paid by the developer. However, even in retail segment we are seeing that brokerage has gone up."