Local realtors make a killing on the information market

BANGALORE: Real estate consultants and experts in India have become hot property for overseas buyers. Fund houses, private equity firms, venture capitalists, bankers, institutional investors, companies, high networth individuals, nonresident Indians, indeed just about every potential property buyer, are dialling local real estate experts to get a feel of the local market.

The best part is, to just share one’s knowledge of the real estate scenario in a city like Bangalore , these consultants/ experts get paid anywhere between $300 and $500 an hour. And, if they are required to fill in a market survey, he gets paid around $200 per survey form.

Farook Mahmood, CMD, Silverline Group and president of the Bangalore Realtors Association , has been flooded with calls from overseas buyers who pay $500 an hour for an update on what’s happening in the city.

Mahmood, who has been dealing in Bangalore’s real estate market for the past 30 years, says this trend of overseas clients paying per hour or for a service is a recent phenomenon .

Real estate consultants say they receive around 2-3 calls a month, with some consultants doing even more. “I get calls one month in advance, where a date and time is fixed for the telephonic interview to happen,” says Mahmood.

According to investment bankers, this demand for knowledge from local real estate consultants is also happening in other markets such as Mumbai, Delhi and Chennai . One such global firm that has been actively calling real estate consultants is Gerson Lehrman Group. The company is a network of consultants, physicians, scientists, engineers , attorneys, market researchers , and other professionals from around the world.

As most local property consultants and experts have a very sound knowledge of the local market, they have great access to developers and know what’s going on on a project basis, says an investment banker.

Traditionally, such information on the real estate market , especially for PE and VC firms, is compiled by global property consultancy firms, many of whom have established their offices in India. But these consultancy firms charge around 5 or even 10 times more than what is being given to the local property consultants, says a real estate consultant who did not wish to be named.

Geetha Naresh, another Bangalore-based property consultant, has just been approached by VC firms seeking guidance on the real estate market.

QUESTIONS ASKED
Is it a suitable time to invest in real estate About specific micro markets within the city About developers and their standing in the market Trends in commercial and residential space