Government intervention is needed in India to bring regularization in unorganized real estate broking, says a report by Netscribes, a knowledge consulting solutions company. Netscribes has launched the report titled Real Estate Broking Market in India 2011, which says India has witnessed a growth in demand for residential and commercial space. Aided with rising disposable income and industry initiatives to organize the sector, the real estate broking market is provided with the needed impetus for its growth in India.
The report takes an overview of the real estate sector in India including market size and growth. It takes a ground zero assessment of the real estate broking market in India along with a distinction between organized and unorganized brokerage market. The business model of realty brokerage with online and offline business prevalent in the brokerage market has also been analysed.
An analysis of the drivers explains the factors for growth of the market including growth in demand for residential space, growth in demand for office space, growth in the hospitality sector, the business being highly lucrative and the NRI influx factor. India is an emerging economy and with rising GDP growth across the country, people are equipped with more disposable income in their hands.
The report with the stock market being subjected to volatility, real estate becomes a prime sector for investments which has given strong returns to investors. Thus, it is estimated that investments in real estate will continue to increase which will lead to growth in the real estate broking market. Rising demand for residential and commercial space has added to the sector’s growth as it yields lucrative returns.
According to Netscribes due to NRI’s looking to invest in India, it has emerged as a thriving market. However, certain challenges are present in this market. The key challenges include active unorganized market and business being completely dependent on property sales. A section of the report deals with the largely unorganized market and the industry regulations that are imposed to make the market organized and to make transaction deals more transparent.
The regulations existing in the market have been covered and include the initiatives taken by the Government towards creating transparency and towards ensuring that the market becomes largely organized in nature. The major trends indentified in the market include the foray of stock brokers into real estate broking, farmers becoming land brokers, the rise in real estate professional programs and tie-ups between brokers and real estate developers.
A competitive landscape of the major players including both foreign and domestic broking firms and consultants as well as online players in the market is provided which contains a snapshot of their corporate information and business highlights.
