Attempting to fully understand the real estate industry in India from a North American perspective may prove to be challenging. The two cultures are vastly different, making success uncertain.
A push in both Canada and India for greater industry professionalism
“Comparing India to Canada is not the right approach,” emphasizes Re/Max India’s CEO and co-owner, Aditya Agarwal. However, there is a shared goal in both countries to enhance professionalism within the industry.
India, with its rapidly growing population of 1.45 billion, has surpassed China as the most populous country in the world. The real estate sector in India is thriving, with a stable economy, low cost of living, and significant investments in infrastructure. The housing demand is high, presenting ample growth opportunities.
Realtors in India can earn substantial incomes, along with their clients, according to Agarwal.
Look for ‘a new and different change in Indian real estate’ and a market ‘on the verge of rapid expansion’
The real estate industry in India is currently unstructured and unregulated, although recent years have seen efforts towards change. The legal framework and government regulations are stricter in major cities like Mumbai and Delhi compared to smaller towns, notes Agarwal.
Government initiatives have been implemented to regulate the market, with the establishment of Real Estate Regulatory Authorities in each state. These efforts are expected to bring about significant changes in the Indian real estate sector.
India Today magazine commended the industry for its improvements, stating that government reforms have positioned the Indian real estate market for rapid expansion.
India’s market ‘frontier-like’: NAR-India
The National Association of Realtors (NAR-India), formed in 2008, has described the Indian market as “frontier-like.” This perspective may differ from the North American view, as India’s historical background under colonial rule significantly influences its real estate industry.
Challenges in India include the absence of a standardized MLS, lack of mandated licensing or training for agents, and limited data for sales prices and comparables. Regulatory complexities and organized crime further complicate the industry.
Some feel industry is unorganized, more should be done
Agarwal believes that NAR-India could do more to empower Indian realtors. The industry faces legal framework deficiencies, with transactions often occurring without formal agreements, leading to challenges in commission payments.
Eldred Fernandes, a former real estate agent in India, highlights the unorganized nature of the sector, where trust plays a significant role in transactions. There is room for improvement in organizing the industry and establishing standard practices.
Industry inconsistencies with ‘huge potential to organize the sector’: An ‘enormous challenge’
Fernandes, now a Royal LePage agent in the Greater Toronto Area, notes that while the new-build condominium market in Indian cities may be somewhat organized, the resale market, especially in smaller areas, lacks consistency.
He emphasizes the enormous challenge of organizing the real estate sector in India, citing corruption issues and the need for regulation to address under-the-table deals to evade taxes.
Many locals happy with status quo and don’t want change
While North…
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