Challenges in Real Estate Brokerages in the Indian Market | ThePropzy

The Role of Brokerages

Despite the rise of online portals and direct transactions, real estate brokers remain vital. They act as advisors, negotiators, and facilitators, helping buyers and sellers navigate a complex process. However, the industry is struggling with structural challenges.

Major Issues

1. Unorganized Market: Nearly 80% of Indian brokers operate without proper registration or training, leading to lack of professionalism.
2. Digital Shift: Platforms like MagicBricks and Housing.com allow buyers to shortlist properties directly, reducing reliance on brokers.
3. Regulatory Compliance: With RERA, brokers are required to register, maintain transparency, and provide accountability. While beneficial for buyers, small brokers find compliance costly.
4. Changing Buyer Expectations: Clients today want detailed market reports, legal guidance, and digital presentations—services many traditional brokers cannot provide.
5. Price Competition: High competition pushes commission rates down, impacting broker earnings.

Opportunities Amid Challenges

To remain relevant, brokerages must:

• Adopt technology tools like CRMs, digital advertising, and AI-powered property match systems.
• Build trust and credibility through professional certification and transparent dealings.
• Offer end-to-end services, including home loans, insurance, legal paperwork, and property management.

Case Study

Leading brokerage firms in metros have started offering 360-degree virtual tours, AI-driven property suggestions, and zero-brokerage rental platforms. This innovation ensures survival in an otherwise highly competitive landscape.