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BROKERS' DELIGHT: The increase in commission to brokers is a clear indication that builders are desperate to sell flats.  FILE PIC

Brokers are set to gain from the slump in the real estate market. With builders struggling to sell property even with lucrative schemes such as a flat free on the purchase of another, free stamp duty and heavy discounts, they have doubled the commission to brokers.

Builders are now offering brokers a commission of four to five per cent from the earlier one or two per cent on the sale of every flat. Vibhoo Mehra of Mumbai Properties, a real estate firm, says brokers are in high demand. "Almost all builders in the city have doubled their commission to brokers," said Vibhoo.

Experts believe that builders have realised that they cannot sell property without the assistance of brokers. This has compelled them to maintain close relations with brokers. Ajay Chaturvedi, a real estate expert, said, "Earlier, brokers were not allowed to enter builders' offices, but now, they are also invited to functions organised by the builders. The increase in commission is a clear indication that builders are desperate to sell flats and earn money."

Sending SMSes

Rajesh Garg, a broker who handles property between Dadar and Dahisar, reveals that builders are sending text messages to inform brokers about the increase in commission. "I have received messages from several builders informing that they are willing to pay a higher commission on every sale," said Rajesh.

While brokers are happy to be in demand, many believe that with little sale taking place in the realty market, they are unlikely to benefit. "Builders have approached brokers to ensure sale, but the chances of selling property in the time of recession are very bleak," said Prem Batra, a Bandra-based broker.

Builders, however, are not willing to divulge any details on record about the increased commission. Many of them even deny offering more commission. "I am not offering any extra incentives to brokers, but other builders are," said a renowned city builder, who did not wish to be named.