Growing Technology in Real Estate
Approximately Rs 2,000 Crore Annual Savings in Commissions in India
In the real estate sector, an intermediary has always been necessary for any purchase. Whether buying a house or land, a commission has to be paid based on the value of the property. However, the situation has changed. Technology has now taken the place of intermediaries in real estate transactions. Yes, nowadays, real estate transactions, especially home purchases, are increasingly happening online. It is estimated that online real estate transactions could save approximately Rs 2,000 crore annually in brokerage fees in India.
In the real estate sector, brokerage or commission is very common. Whenever we purchase a property, we have to pay a commission to the intermediary who assisted in the transaction. Whether it is an individual or an organization, brokerage fees must be paid. The brokerage amount varies based on the value of the property. Many government employees, housewives, and unemployed individuals act as intermediaries in the real estate business due to the substantial brokerage amounts involved. However, there has been a significant change in this aspect. Currently, technology has reduced the importance of intermediaries in the real estate sector as much as possible.
Everything online..
Currently, most of the discussions related to home purchases are conducted online. Buyers are directly contacting property developers or builders online. They are gathering all the details related to house prices, advance payments, and construction agreements online. They even view the site through video walk-throughs and monitor the construction stages via their mobile phones. As a result, the need for intermediaries in home purchases has significantly decreased. Real estate experts state that approximately 50% of customers rely on online platforms for their home purchases. They are making decisions about buying properties after viewing them through video walk-throughs.
The usage of online platforms for property visits, selection, and transactions has dramatically increased. Specifically, online property sales have surged in cities like Bengaluru, Mumbai, and Pune. It is reported that IT professionals, executive employees, and prominent business people are relying on online platforms for property purchases. One reason for the rise in online transactions is that paying commissions through real estate agents and intermediaries is avoided. However, while cities like Bengaluru, Mumbai, and Pune are increasingly relying on online methods for property purchases, Delhi and Hyderabad still heavily depend on brokers and real estate agents. Despite viewing and selecting properties through online videos and walk-throughs, real estate experts recommend visiting the site in person once or twice before making a final decision to purchase a property.
