How Commercial Real Estate Brokers Get Paid in India: Rates, Splits and Payouts
There is no statutory rate for commercial brokerage in India. How fees are calculated, split with agents, taxed and paid, with worked lease examples.
Commercial real estate brokers in India are paid a negotiated fee, usually a percentage of the deal value for a sale or a multiple of monthly rent for a lease. There is no single statutory rate for commercial deals, so what you pay or earn comes down to the written brokerage agreement. This guide explains the common structures, the factors that move the rate, how firms split it with agents, worked lease examples and what to watch on payout timing and tax.
How commercial brokerage is usually calculated
Sales are commonly quoted as a percentage of the transaction value, while leases are quoted either as a number of months of rent (one to two months is common practice) or as a percentage of total lease value. Treat any figure you read, including those below, as market practice that varies by city, asset and negotiating power rather than a rule. For comparison, our guide to channel partner brokerage and payouts covers the residential, developer-paid side.
Who pays also varies. In most commercial leases the owner or landlord pays, and in some metro deals the tenant pays a share. Write who pays, and when, into the agreement before the search begins.
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What moves the rate
- **Property type and value.** Percentages generally fall as ticket size rises. A ₹1 crore deal can carry a higher rate than a ₹10 crore deal.
- **Location and market conditions.** Mumbai, Delhi NCR and Bengaluru deals are larger and slower to close; tight supply can raise rates, a slow market can lower them.
- **Deal structure and tenure.** Longer leases with rent escalation raise the total lease value, which matters when the fee is a percentage of it.
- **Exclusivity.** An exclusive mandate usually justifies a better rate than an open listing because the broker carries more risk and invests more effort.
- **Scope of service.** Market research, tenant scouting, legal coordination and post-deal support support a higher fee than basic matchmaking.
- **Complexity and risk.** Multi-party deals, joint ventures, profit-sharing leases and delayed payment terms usually command more.
How firms split commission with agents
Once the firm is paid, the agent is paid out of it under the internal agreement. Splits seen across Indian brokerages include 50/50 for newer agents, 70/30 to 80/20 for experienced ones, and higher shares for top performers in boutique or performance-based firms. Many firms add monthly retainers, bonuses or slabs that rise with volume. The split is a business decision, not a rule, so put it in writing for every agent and every deal type.
Worked examples
These simplified examples use round numbers so you can adapt them to your own deals. They show gross fees before GST and tax deductions.
Example 1: Office lease in Pune
Monthly rent ₹2,00,000 over 36 months, for a total lease value of ₹72,00,000. If the brokerage is two months of rent, the fee is ₹4,00,000. With a 70/30 split, the agent receives ₹2,80,000 and the firm retains ₹1,20,000.
Example 2: Retail lease in Bengaluru
Monthly rent ₹5,00,000 over 60 months, for a total lease value of ₹3 crore. At 4% of total lease value the fee is ₹12,00,000. With a 60/40 split, the agent receives ₹7,20,000 and the firm retains ₹4,80,000. If the agent sourced and closed the client alone, a better split or a bonus is a reasonable ask.
Timing of payment, GST and TDS
Commission is usually due within about 30 days of the agreement being executed or registered, but milestone-linked terms are common: part on signing and the balance on possession, rent commencement or deposit clearance. Agree the trigger in writing, because vague triggers are the main source of payout disputes.
Brokerage is a taxable service, so GST at 18% applies when the broker is GST-registered, and TDS may be deducted by the payer under the Income Tax Act. Rates and thresholds change, so confirm current figures with your chartered accountant; our channel partner payout guide lists the typical deductions to plan for.
Compliance points to check
Agents and brokers dealing in RERA-registered projects, including commercial ones, generally need their own RERA registration in the state of operation. Read the basics in our guide to RERA objectives and rules, and if you run a brokerage, see compliance software for brokerages.
Negotiating a fair rate
Start from the scope: ask what the broker will do, over what period, and what is excluded. Trade exclusivity for a better rate, link part of the fee to milestones, and cap any retainer. Brokers should ask for the payment trigger, the tax treatment and the dispute process in the same document as the percentage.
Tracking commissions as you scale
Commission disputes usually come from the same three gaps: no record of who sourced a lead, an unclear trigger for payment, and calculations done by hand in a spreadsheet. A CRM built for real estate closes these gaps by tagging the source of every lead, locking attribution so two partners cannot both claim it, and calculating payouts from booking data.
How Sell.do handles it
Sell.do's channel partner module gives developers digital onboarding, lead conflict rules, partner dashboards and payout tracking tied to bookings. Brokers and partners see their own leads, units and incentives in one place. See the AI-agentic CRM built for Indian real estate for how this connects to inventory, calling and WhatsApp.
Frequently asked questions
How much commission does a commercial real estate broker get in India?
It is negotiated. Leases are often one to two months of rent and sales are a percentage of deal value, but rates vary by city, asset and exclusivity. Put the number and the trigger in a written agreement.
Who pays the broker in a commercial deal?
Usually the owner or landlord, sometimes with the tenant paying a share in metro lease deals. Whoever is paying should be named in the agreement.
Is commission fixed by law?
For commercial deals there is no single statutory rate, so it is a commercial negotiation. RERA registration requirements for agents are a separate matter.
How is commission split between a firm and its agents?
By internal agreement. Common structures run from 50/50 for newer agents to 70/30 or 80/20 for experienced ones, with bonuses or slabs on top.
How do I stop commission disputes?
Record who sourced each lead, agree the payment trigger in writing, and calculate payouts from system data instead of memory or spreadsheets.
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