New Link Exchanger
Joined: 23 Apr 2011
|Posted: Sat Apr 23, 2011 4:59 am Post subject: A life line for many
|In Kerala Property development and the appreciation in land values has been a major contributor to the government’s annual revenues. Not only that, a large group of people eked out a living through real estate activities. The skilled construction workers including masons, plumbers, carpenters and electricians and other unskilled laborers are already overloaded with work due to the building boom in the state.
The real estate consultants and the small brokers earned their daily income by assisting clients to sell or buy properties. In cities like Cochin and Trivandrum, a broker has a prominent place in the society. Most often, the prime properties put up for sale are not properly advertised in the newspapers. The brokers take care of the advertisement and management of the transaction. Most often, the property is sold at a high price.
Small brokers charge about 5 percent as service fee for a property transaction involving one lakh rupees. When the value of the property goes up, the service fee charged is about 2 percent of the total transaction cost. However, the service fee charged varies from one real estate consultancy to the other. It depends on the time taken to assist a client to sell off his property and the expenses involved from the part of the broker.
Since most of the real estate transactions are taking place in the city limits, in the rural areas of the state you can see very few brokers and real estate consultancies. Not only that, people in the rural areas lack the money needed to invest in real estate. Due to the recession in the global market, the volume of real estate transactions have come down, but things are not on the negative side yet. The Kerala real estate market always threw up many surprises and many more surprises are in store in the most literate state in India.