HDFC arm aggregating brokers' services to widen realty market

The company's new strategy comes in the backdrop of the prolonged slowdown in the real estate markets in the country

HDFC Realty, real estate advisory arm of Housing Development Finance Corporation, is working on aggregating the services of local property brokers. This in the backdrop of the prolonged slowdown in real estate markets.

“If we set up a large distribution network, with brokers in multiple cities, developers can market their projects in many cities, instead of restricting it to their home markets,” said Vikram Goel, chief executive of HDFC Realty, in an interaction with this newspaper.

Online real estate advisor PropTiger’s India Realty Report for 2015-16 reveals housing sales across the top nine cities fell 33 per cent, even as prices saw a marginal increase of only two per cent in the year. The National Capital Region was the most affected, with sales down 51 per cent.

Goel said brokers would also get more opportunities to sell various projects across different cities and get consistent supply of projects to sell, "beyond their micro markets”.

He said the firm had sold properties worth more than Rs 10,000 crore in the past four years, with growth of 50 per cent every year. “If the configuration is right and pricing is right, property sells,” he said. Adding that except for Mumbai, properties with a price tag of Rs 3,000 to Rs 5,000 a sq ft are selling well in most cities.

The company wants to establish a dominating position in selling and leasing small offices of  800 to 2,000 sq ft each, and be an ‘active player’ in larger spaces, he said.  They had, he stated, helped companies procure 200 units or about 400,000 sq ft of smaller offices in the past two years and expected a similar number this year.