Despite attracting significant levels of domestic investment, the Real Estate Market is chronically under-researched in Pakistan. A further sub-section of this market, i.e. the Real Estate Brokerage Market, is this paper’s main topic of analysis.
Real estate brokers, also referred to as Real Estate Agents (REAs), wield significant influence over the Real Estate Market. Persistent information asymmetries mean that the REAs can often determine prices at the expense of the property sellers/buyers. Furthermore, extensive paperwork requirements along with tedious transfer procedures mean that the buyers and sellers are left without any choice but to hire REAs who charge exorbitant commissions.
Further complicating the situation are the facts that the Real Estate Brokerage Markets is not regulated and that there are almost non-existent formal requirements (educational, training, licensing etc.)
Contrary to what one might suppose, the surveyed REAs in the paper are not opposed to having more formal licensing and regulatory frameworks.
There is also an agreement among REAs that there should be training courses for Real Estate Market that all REAs should be mandated to take and get certification before operating in the market. There is a need for more rigorous empirical research that studies the role of REAs in the market, their ability to influence prices, and the consequent effect on the Real Estate Market.