In a bid to expedite sales of their under-construction and ready-to-move properties, Gurugram’s property developers have reportedly doubled broker commissions, as per a recent Financial Express report. Traditionally, real estate brokers in the National Capital Region (NCR) receive commissions ranging from 2 to 4 percent. However, the current move increases these commissions to 7-8 percent, aimed at attracting buyers swiftly and clearing substantial inventory.
This strategic adjustment aligns with recent trends where developers are focusing on selling apartments priced between Rs 5 to 7 crore. Gurugram has witnessed sales totaling at least Rs 5,000 crore in recent months, reflecting a proactive approach by developers.
Additionally, developers in Gurugram are waiving “flipping charges” or transfer fees to further incentivize purchases. Typically, these charges are levied when a flat is sold before completion, but exemptions facilitate faster transactions by easing registration concerns for subsequent buyers.
Despite a 57 percent decrease in new project launches, Gurugram has reported a notable 12 percent increase in sales. This uptick corresponds with a 35 percent reduction in unsold inventory, which stood at nearly 33,000 units by the end of the March quarter. However, concerns have been raised regarding certain transactions labeled as “parchi” sales, indicating changes in property ownership without formal registration or sale.
Santhosh Kumar, Vice-Chairman at Anarock Property Consultants, highlighted that larger developers generally avoid such practices, underscoring varied market strategies. Meanwhile, a private equity firm executive expressed reservations about reported sales’ authenticity, describing transactions sold to underwriters at Rs 8,000 per sq ft and subsequently marketed by brokers at higher prices, yielding significant margins.
Regulatory changes, including the implementation of self-declaration certificates (SDCs) for advertisements, have also impacted the sector. The Advertising Standards Council of India (ASCI) has mandated SDCs for all new real estate advertisements across various media platforms from June 18, pending further judicial clarity post-July 9.
Gurugram’s real estate sector is navigating a complex landscape with strategic commission adjustments, incentive-driven sales tactics, and regulatory shifts. These developments reflect ongoing efforts to address inventory challenges amidst evolving market dynamics and regulatory frameworks, shaping buyer behavior and transactional trends in the region.