How much commission real estate agents typically charge in India depends on the deal: about 1% to 2% from each side on a resale, nothing direct from the buyer on a new project, and usually one month’s rent on a rental, plus 18% GST. RERA doesn’t fix any of these rates, so every figure below is a market convention you can negotiate.
Resale Homes
This is where buyers feel brokerage most directly.
- Residential sales typically carry 1% to 2% of the property value from each of the buyer and the seller, according to several guides
- A common split is 1% from each side, giving the broker 2% in total
- One guide says high-value properties above ₹1 crore are often negotiable to 0.5% to 1% in total
- Some brokers use slabs, such as 2% up to ₹50 lakh, 1.5% from ₹50 lakh to ₹1 crore and 1% above ₹1 crore
- Regional patterns are similar across metros, with Bengaluru often quoted nearer 1% to 1.5%
New Projects
Here the buyer usually pays nothing directly.
- The developer pays the broker or channel partner out of its marketing budget, typically 1% to 3% of the sale value
- Whether that cost is reflected in the price you pay is a question worth asking
- Confirm in writing that you owe nothing extra, since some brokers charge buyers in addition
Rentals
Rental brokerage is quoted in months, not percentages.
- Residential rentals commonly carry one month’s rent, often from the tenant, sometimes split between tenant and landlord
- Variations include 15 days to one month in some regions, half a month each from landlord and tenant, and one to two months in another guide
- One month’s rent equals about 8.3% of the year’s rent, so it’s a larger share than it looks
- Commercial rentals are usually one to two months’ rent, or 1% to 2% of the lease value, and one guide quotes one to three months
Commercial Sales
Commercial deals pay more, and sources disagree.
- Several guides put commercial sales at 2% to 5%, depending on the size and complexity of the deal
- Another gives 1% to 3% for commercial brokerage
- Commercial brokerage is often paid by the landlord or seller
GST and TDS
Tax adds to the headline rate.
- Brokerage attracts 18% GST, so a ₹1 lakh brokerage on a ₹1 crore deal adds ₹18,000
- One guide says small brokers under ₹20 lakh of annual turnover may not need to charge it, so ask whether GST applies
- Always clarify whether a quote is inclusive or exclusive of GST
- TDS under Section 194H applies when a builder or other business pays commission, with one guide giving 2% above ₹20,000 a year and another giving 5%
- An individual or HUF not subject to audit generally doesn’t have to deduct TDS on brokerage they pay, according to one guide
Worked Examples
These use the rates above and show the real outgo.
- Resale at 1% each side: on an ₹80 lakh flat, your brokerage is ₹80,000 plus ₹14,400 GST, or ₹94,400
- Resale at 2% from you: ₹1.6 lakh plus ₹28,800 GST, or ₹1,88,800
- Rental: one month’s rent of ₹30,000 plus ₹5,400 GST would be ₹35,400, if GST is charged
- On a ₹1 crore sale, each 0.5% of brokerage is ₹50,000 before GST
What Affects the Rate
The number isn’t random.
- Deal type: resale, new project, rental or commercial
- Value: higher-priced properties often get lower percentages
- Scope: an agent who does paperwork coordination, loans and negotiation may charge more
- Location: guides suggest rates vary by city and market conditions
- Demand: scarce or premium listings leave less room to bargain
How to Negotiate and Protect Yourself
A few steps make the fee clearer.
- Agree the rate, GST treatment and payment timing in writing before you start
- Pay only when a deal closes and against an invoice
- Ask whether the seller or developer is also paying, and how that affects incentives
- For expensive properties, ask for a slab or a flat fee
- Check the agent’s RERA registration number
FAQs
Q1. What is the standard brokerage on a resale flat?
Typically 1% to 2% from each of the buyer and seller, plus 18% GST, though it’s negotiable.
Q2. Do I pay brokerage on a new project?
Usually not directly, since the developer pays the broker 1% to 3%, but confirm in writing.
Q3. How much is rental brokerage?
Commonly one month’s rent, often from the tenant, though it varies from 15 days to two months.
Q4. Is brokerage fixed by law?
No. RERA requires registration but doesn’t cap commission, so all rates are negotiable.
Q5. Is GST charged on brokerage?
Yes, at 18% for registered brokers. Always check whether a quote includes it.
