Real Estate Brokerage Business in India

2024-01-23

Customer Solution

"The Best Investment On Earth Is Earth."- Louis Gickman

The real estate sector is a globally recognised sector. After agriculture, real estate is the second largest employment giving sector in India and is slated to grow at 30 per cent over the next decade. Real Estate brokerage industry is major area of Real Estate Industry.

How big is real estate industry in India?

India is growing like anything and demand for real estate is at peak now.

Real estate market in India is expected to touch US$ 180 billion by 2020. 5-6 per cent to the country's Gross Domestic Product (GDP) is contributed by Housing Sector.

In the period Financial Year 2008-2020, the market size of this sector is expected to increase at a Compound Annual Growth Rate (CAGR) of 11.2 per cent.

India is ranked fourth in developing Asia for FDI inflows as per the World Investment Report 2016 by the United Nations Conference for Trade and Development.

• Indian real estate has attracted $32 billion in private equity so far.
• The global capital flow into Indian real estate in 2016 stood at $5.7 billion.

In 2016, office space across the top eight cities increased to 34 million square feet (msf). Bengaluru witnessed the highest real estate development during the year. Information Technology and Business Process Management sector led the total leasing table with 52 per cent of total space uptake in 2016.

The best city in India for commercial real estate investment is Mumbai, with 12-19 per cent ROI likely in the next five years, followed by Bengaluru and Delhi-National Capital Region (NCR).

One important sector associated with the real estate sector is Real Estate brokerage sector. Real Estate brokerage sector is one of the essential sub sectors of real estate which plays a major role in selling properties between a seller and buyer by acting as an intermediate between the two parties.

Factors driving real estate industry in India

1. Very young generation (Average age is 30)
2. Fast urbanisation (India is building cities)
3. Growing Economy (Rising Economy)
4. Better Government control and Transparency (RERA)
5. Better Banking System and Easier Home Finance (Interest rates are falling)

The reason real estate sector holds 6.3 % growth rate is because of the brokerage sector. A brokerage business is a type of business where business transfer agents or intermediaries, assist buyers and sellers in the buying and selling process.

Real Estate agents estimate the value of business and advertise it for sale. They also handle the potential buyer interviews, discussions and negotiations with prospective buyers in a business sale.

A broker of record is responsible for ensuring that the brokerage complies with the Real Estate and Business Brokers Act, 2002 (REBBA 2002), and its regulations. Responsibilities also include maintaining the brokerage trust account and reviewing and signing trade record sheets.

Sectors such as IT and ITeS, retail, consulting and E-commerce have seen a lofty demand for office space lately. The office space consumption in 2016 across the top eight cities aggregated to 34 million square feet (msf).

Real Estate Customers are changing and they need Smart Brokers Now!

Factors for real estate brokerage industry to grow - why we need good brokers/ Real Estate agents?

Real Estate brokers and agents help home buyers and sellers complete their real estate transaction. Real estate brokerage industry is the reason that the real estate sector holds around 6.3% growth rate is the brokerage sector, where in the earning opportunities are numerous and huge.

Educated brokers are more likely to crack the deal in your favor. As unlike some shady dealer who give you random facts about a property. A proper educated dealer is able to provide you with a clear picture of the industry. Thus help you make a better choice.

Real Estate Agents are Doctors of Real Estate.

Negotiating is perplexing Business and many people don’t like the idea of doing a real estate deal through an agent. They like transparency and direct negotiation between buyers and sellers and allows the parties to look after their own best interests.

In the RERA act, Real Estate Agents can’t lie because they are licensed professionals. Working with a licensed real estate agent under an agency agreement (i.e., a conventional, full-service commission agreement in which the agent agrees to represent you) is beneficial. Your agent will be under license law to act in their clients’ best interest (not his or her own).

With technology a total integration of these sub-sectors like brokerage could be integrated to a single interface where in all your housing solutions can be found under one shed.

So far the brokerage sector associated with real estate has been a really unorganised one. Anyone who could set up a meet between potential buyer and a seller could become a broker. This sector is so vast that it covers nearly 10 lac independent brokers. More than 4 billion $ revenue generated in the form of brokerage fee. It is not easy to tap this market out there as a new entrant into the market.

According to NAR (National Association of Realtors India), 10 Lac real estate brokers work in real estate brokerage space. From client or demand side we have buyers looking for homes starting from 20 Lac onwards to anywhere.

How big real estate Brokerage Company like Regrob provide good services to the client!

There are many fantastic services we provide which makes the business successful –

1. Builder Tie Ups (More option for Customers) – We have huge builder tie up’s PAN India, which is more than 400 A category builders.  Pan India presence and professional sales team with best in class technology, builders also prefer to work with us. In RERA framework, builders are working with certified and professional real estate consultancies. Negotiations with them are also facilitated by us on the deals and brokerages which serve as an advantage for you. We are able to get good deals and offers for our customers from these builders.
2. Actual Pictures (Search From Home) - We provide 100% authentic information with actual pictures to our clients. So our clients can search for their dream home from their home itself.
3. Dedicated Support Team (Offline Support) – We have dedicated offline team to help our customers offline too. Our relationship managers help at every level. Relationship manager will be there to solve all your problems. We help our customers with Home Loan, Legalities too.

We provide verified and actual properties online using best in class technology with exceptional offline consultants to make real estate decisions with utmost precision and happiness.

How joining regrob is good for individual business.

ReGrob is a full-stack offline to online real estate brokerage firm aimed at simplifying the buyer’s experience of finding homes.

 

We ensure seamless conversion of transaction for leads through our highly-targeted online presence to potential buyers along with an experienced & well-versed ground sales team.

Through this organised offline-to-online approach. ReGrob has generated over Rs.500 Crores of GMV in the last 3 years. Regrob is expecting to reach 2X growth in this year alone.

The ReGrob team not only aims at organising the real estate industry for the customers but also generate lucrative financial/ business opportunities for our fellow real estate professionals & entrepreneurs.

ReGrob Real Estate Solution has both online and offline components.

• Online – All online work is technology enabled real estate and we have equipped tech team to do this. All technology related work is by central team. This online or technology component is almost 60% of total business. Consumers can see all information online only using our web and mobile app. Consumers need to utilise on ground services only when they need to visit the home or any other property.
• Offline – ReGrob provides exceptional on ground help to real estate consumers. We train our business partners to provide the best customer service. Our offline team is full- equipped to help with home loans, legalities and other allied services.

We would love to hear your feedback on Indian Real Estate Brokerage Industry!

Kindly give your feedback on the comments section below. Thanks.