Bangalore real estate market is prone to many unfair and unjust means and ways. The situation is mainly due to the presence of unregistered real estate agents.
Bangalore real estate market has been experiencing a boom despite the sluggishness existed in the country. Yet the real estate boom has led to many unjust means and ways in the city.
Looking at the way how the homes are rented, bought and sold, one can read how the Bangalore real estate market booms. Due to high inflow of middle-class and upper-middle class job seekers to Bangalore, property prices have shot up.
Property prices have gone up by three or four fold in the last decade. Property prices had tripled or quadrupled in Bangalore real estate market. Still people are mad after the properties of Bangalore. Still people are running to grab a piece Bangalore property.
This is not our point of discussion. How the sale of a property takes place is our concern. Recently a doctor who wanted to sell his home commented that he was really fed up with some self-introduced “real estate agents.” They all wanted the share and commission for sale.
They all need a share or commission. Yet what they do is nothing or really embarrassing. They do not even do the minimum for the sale of property. Some of them offer to bring some prospective home buyers. They take an amount and then vanish into the air. They never appear afterwards.
Some of them bring some takers without informing the house owners prior to it. In most of the cases the sale of the property does not occur. Many of such instances has occurred and been reported. Finally the home owner has to find some takers for his property by advertising in some newspapers.
How these real estate agents work? The news about the real estate agents was surprising. Many of them do not have an office of their own. When asked about their working strategy, one of the real estate agents just replied in his native language “idhu maduvadhukke, namake ondhu mobilu sakku…..” (We need only a mobile for this.)
The list of self- introduced real estate agents contains cooks, auto drivers, security guards, sweepers, newspaper agents …… and the list goes on. For many of them this amount is higher than their primary income. Most of them earn a minimal income through their prime job which is low income generating.
Many of them have a simple modus operandi. They normally work in groups. This group work enables them to gain information about the area and the available properties for sale or properties for lease. Their rate also varies. In case of sale it is 2% of the total sale value while in the case of rentals it is the one month rental charge.
Sumit Jain, co-founder and C.E.O. of CommonFloor has said that these people are making use of the lack of information between the renters/sellers and the takers/buyers. He blamed that there exist no such real estate website which provides aggregate information about the market condition of the area as well. This situation is well utilized by these people.
Mr. Jain revealed that he knows many high professionals who have turned real estate consultants. The profession needs no training, no qualifications, etc. This pushes more people to become real estate agents. CommonFloor reports that there exist around 3,000 real estate consultants in Bangalore. According to the CommonFloor information, there are 17,000 in Gurgaon in the NCR region.