Gurgaon is one of the hottest real estate destination in the country which has seen mushrooming of real estate brokers with no real knowledge about an industry which plays crucial role in turning the dreams of lakhs of people into reality. Recent estimates suggest that there are about 35000 individuals and firms in Gurgaon engaged in real estate brokerage, and many of these are not even registered as required by the Haryana government law. A large number of these brokers also include those who dabble in real estate sparingly, and others who are fly by night operators out there to catch a gullible buyer or investor, and trap him out of his hard earned money. However, with the slowdown hitting the real estate sector during last one year, majority of the real estate brokers, and firms are not doing well.
This also becomes clear from the fact that every week a number of broker shops in hot realty areas like Sohna Road, and Golf Course are found closed indicating the slowdown. In the National Capital Region there are around 2.5 lakh people engaged in this industry, and they are also facing the pangs of slowdown. It is worthwhile to mention that NCR constitutes almost 40 per cent of real estate development in the country, and is one of the fastest growing real estate destinations. The slowdown in particular has hit the brokers who had adopted a transaction approach to real estate instead of developing deep knowledge about markets, price, competition, and building a capacity to compare deals and give multiple options to buyers. This is despite the fact that large number of deals in this region happen only through brokers, and individual property dealers have in the past played an important role.
However, it is also true that when the going gets tough the weak will sell everything, and try to rush out of the market. The same is happening in the NCR region where fly-by-night operators, and amateurs who were dependent on incidental earning are moving out as they had little strategic perspective, and planned approach to business was missing. With the times changing these brokers are now leaving the space to real estate consultancies, and property firms which have devoted time, money, and other resources to understand the changing dynamic of the industry, the supply, and demand side of the real estate, market conditions, economy, and interest rates in context of the property industry.
A firm like Certes Realty Limited when it set out to operate in real estate domain had a clear vision, and roadmap of how it was going to fill the gaps that could be beneficial to buyers, and earn them not only profit but long term relationships that are the basis of success in this industry. Ramesh Menon, Director Certes Realty Ltd says that their goal was not to be one among the 2.5 lakh people operating in the NCR, and they wanted Certes to be the differentiating factor in an industry which lacks good professionals. As such the firm devoted a lot of time, and research on the Delhi Master Plan 2021, studied its implications, learned how it is going to effect the Delhi real estate market, and land.
Certes Realty Ltd also closely worked with government officials, revenue department, and local villages, and formed linkages with key stakeholders in Delhi. “We have always under committed and over-delivered and this is reflected in the high Rate of Return of our investors. The knowledge of the market is crucial to survive in this industry now”, asserts Menon. A number of firms operating in the market also say that individual brokers played an important role in the past but now the things were moving away from them. It is being hoped that Real Estate Regulatory Bill which will more stringing monitoring of this sector might ensure there is a check on people who turn property dealers overnight. Experts also opine that with real estate business facing the heat due to slowdown it will need to adopt good practices, and bring in better professionals who believe in hand-holding the buyers to the end, and beyond rather than vanishing the scene after pocketing the commission.