An Analysis of Service Quality and Practices of NonRegulated Real Estate Brokers in Sri Lanka: Service Users’ Perception

Abstract

The real estate sector plays a vital role in any economy, with the quality of brokerage services significantly impacting market dynamics. In Sri Lanka, real estate brokerage operates in an unregulated environment, leading to concerns about service quality. Despite the widespread presence of non-regulated brokers, research on their practices remains limited. Thus, this study aims to assess user perceptions of service quality provided by non-regulated real estate brokers in Sri Lanka, focusing on reliability, responsiveness, assurance, empathy, and tangibility using the SERVQUAL model. Primary data was collected from a sample of 100 individuals who had purchased properties through brokers in the Sabaragamuwa Province. The findings reveal significant deficiencies in reliability, responsiveness, and tangibility, all of which contribute to overall dissatisfaction with quality of brokerage services. The study emphasizes the urgent need for regulatory measures to enhance service quality, protect homebuyers, and stabilize the real estate market. By addressing these gaps, the research highlights the negative consequences of unregulated brokerage practices and advocates for the implementation of regulations to ensure professionalism and improve the overall functioning of the sector.