Developers are bullish about online platforms and expect 25-30 per cent of sales to be generated there in the next five years.
Absence of fresh funding is driving consolidation among real estate portals. Quikr agreed to buy CommonFloor this week.
Earlier this year, Proptiger, backed by media mogul Rupert Murdoch, acquired Makaan.com. Merger talks are under way between IndiaHomes and IndiaProperty.
Sudhir Pai, chief executive, Magicbricks, a real estate portal owned by the Times Group, said, “Consolidation is happening in the middle and bottom. The new players raised a lot of funds but underestimated the incumbents.
"And there is space for either one dominant player, or at best two.”
Online portals have become the preferred tool for research into buying, selling and leasing properties, but it may be a few years before transactions take place online.
CommonFloor and Housing.com pioneered virtual tours, verified listings and offered other services related to buying property that are now incorporated by all the other players.
Since most start-ups need constant funding, it makes sense to merge with others to create a better product offering.
Proptiger, for instance, entered the secondary market after acquiring Makaan’s footprint in 50 cities.
The Chennai-based IndiaProperty can expand its offering to many markets after acquiring IndiaHomes’ transaction services business. Quikr recently created a separate real estate vertical where CommonFloor offerings will come in handy.
“The use of online platforms for booking property is bound to increase. While there could be challenges in providing accurate information to aid decisions, the sector is bound to boom,” Narasimha Jayakumar, chief business officer, 99acres, had said earlier.
Developers are bullish about online platforms and expect 25-30 per cent of sales to be generated there in the next five years.
The real estate sector is witnessing a slowdown over the last couple of years and the market is expected to revive next year.
GROUND REPORT
- In April, PropTiger acquired Makaan.com. Quikr agreed to buy CommonFloor this week. Discussions are on between IndiaProperty and IndiaHomes
- Experts attribute consolidation to hyper-competition and lack of funds for new players. Over the past 12-24 months, MagicBricks and 99acres have strengthened their portfolio and managed to retain their positions
