Indian Online Realty Market Rs.18,000 Cr : Expect to grow 60%

Still the market for Indian online real estate classifieds is nearly Rs. 250 crore, much lower than the the offline market of Rs. 1,200 to Rs. 1,400 crore, according to industry estimates.

Similarly, the market for online real estate brokerage services is only nearly Rs. 200 crore, compared with nearly Rs. 10,000 crore annually for the offline market. This highlights the huge potential for growth.

The overall online real estate market in India is about $ 300 Crore (Rs. 18,000 crore) currently and is expected to grow at 50% to 60% year-on-year, said Mr. Prashanth Prakash, Partner, Accel Partners,which has invested in property sites such as Proptiger and Commonfloor.



Similar to online retail, customers are increasingly moving towards real estate portals as they provides transparency and more reliable transactions. Noida-based Proptiger, set up in 2011,offers end to end service to assist the customer in identifying a property and closing the deal. The portal sold properties worth Rs. 3,000 crore in fiscal 2014 and expects to double the sales this year. We also help customers get housing loans on their property & help with all the documentation work, said Mr. Dhruv Agarwala, Co - founder,Proptiger.The company receives 2.5% to 3% as commission from builders / promoters for each successful transaction.

Proptiger competitor IndiaHomes is seeing similar growth. The online realty portal closed Rs. 6,000 crore worth of transactions in fiscal 2014 and expects that to double this year as it looks to expand to 50 cities from the current 9. We believe the practices in real estate industry are developer / promoter focused instead of consumer focused & therefore we ensure that we do not hire anyone from real estate industry, said Mr. Samarjit Singh, Director, IndiaHomes.
 
India Homes is a channel partner for 450 developers / promoters but pays special attention to 250 category A developers. Increasingly, the developers are also relying on online real estate portals for their sales.

Delhi-based developer Ashiana Housing works with all major online property portals, with 35% to 40% of sales coming from them.

Src: ET

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