PANJIM: Land brokers in the state are experiencing tough times due to the slowdown in the economy of the state. This is a comedown for a state which was considered a destination for rich residents of Mumbai and Delhi to buy a second home. Rich NRI’s or Goan residing in the gulf and Europe used to also dream of buying a house here. The slowdown in those economies has not helped matters.
For the brokers, the ban on mining in the state has hit them hard. When the mining operations were in progress it was not uncommon to have senior executives being recruited from outside the state. This required the company to provide them with accommodation. Denzil Xavier who has been in the business since 1997 said that business has become a little slow now.
He said “The number of calls to our office has reduced there is denying it.” Asked about the profile of his clients, he said that when it came to individuals it was usual that 50% were from outside the state. People he said looked for second or even third apartments in the state. Since these were not their primary residences he explained they all wanted houses in North Goa across the Mandovi bridge. When it came to locals he said they were keen on places like Porvorim which were very popular. Corporate clients he said were specific in their demands. They all wanted to stay in Dona Paula, Campal or even Taleigoa.
The ban on mining has reduced business from corporates. In effect he said the market could not get any worse and it was time for the market to improve. For Urmila Dias another broker in the business and associated with Easy Livin, business was steady. Her clients many of whom had shifted here due to corporate assignments usually wanted fully furnished apartments. She had people who came on long holidays perhaps lasting a month, the casino crowd who did not mind paying anywhere between Rs 40,000 to 70,000 for an apartment and there were those who came here to study.
With regards to students she said there was an interesting development. Goan families did not want to give rooms to afghan nationals since it was claimed they made a lot of noise. This was confirmed by another broker who did not want to be named he said “If I get afghans more often than not I do not get my commission from the family who owns the apartment. I then have to depend on the one month commission I earn from the customer.” Urmila said that Nigerian students who used to come in every year have disappeared with not a single enquiry for an apartment this year. A development confirmed by other brokers the Herald contacted. She said “This is a due to what happened six or eight months earlier with local people getting into a fight with Nigerian drug peddlers”.
With the market tight and business not as forthcoming many brokers are looking at other avenues to earn money or open to negotiations on their fees. Richard Fernandes who operates out of Dona Paula said that it was not uncommon for brokers to reduce their fees to stay competitive in the market. He said “Sometimes brokers reduce their fees and charge half a month from the party that owns the plot. They however insist on taking the full one month from the customer. There are people who will sometimes refuse to pay even the one month they had agreed to pay prior to hiring my services. Once they have the new tenant they start playing games with us”.
He claimed his present assignment which involved looking for tenants for a studio flat in the market was indicative of how slow the business was.
He said “earlier if I placed an adv on line or in a paper I would answer fifteen to twenty calls in the morning itself. Now I have not entertained even one call in three days. That’s how slow the business is.” To stay in the business he has now also started hiring out cars and bikes to earn a living”.
The role of a broker is also evolving according to Denzil Xavier. He said “ Earlier the broker would point at the property ring the bell introduce the two, stay around till the deal was complete take the money from both the parties and move. Today it is very much different”.
Given the history of litigation that surrounds land deals in the state the broker is now expected to check the veracity of claims made by the owner of the property before presenting the client to him or her. Denzil said “We have to do it without a doubt. We also have to check on all aspects of the various papers required as well as visit the various government departments. As you can see our role is evolving and I think it will continue to evolve”.
A stagnant market and tough competition is making life that much more difficult and perhaps the scores of brokers in the state will hope that mining commences so that liquidity may improve in the market.
