Insights and ideas on real estate startups
Indian startups in Real Estate – Broker or No-Broker?
In this article I will bring you the real insights and ideas on real estate startups in India. I will analyse the trend of new startups and what is upcoming in this sector. There are a number of real estate apps in play store which are focusing to make renting, buying and selling property an easy affair for the end customer. Most of them are focusing on subscription and advertisement based business.
Real Estate industry for startups in India is clearly segmented into two divisions where companies like Housing, CommonFloor, Magicbricks, 99acres are sitting at the top and there are many other small companies who are trying to find their niche in this segment.
In this niche segment there are some companies who are trying their level best to remove the brokers from the transactions of renting, buying and selling like flatchat, NoBroker and on the other hand there are companies which are trying to strengthen the Broker community by giving them a platform to interact and share inventory with each other like Plabro, Broex etc. The broker segment that is kind of a backbone of real estate transaction is coming into the limelight with these apps. Broex app is trying to create value for brokers and helps them to close the transaction efficiently by getting in touch with the inventory of other brokers.
So the real question is who will be the winner among them and what are the key ideas for an aspiring real estate startup in this crowded segment. Key fact is that real estate in India is a big multi billion dollar market and has enough space for many competing players. Definitely flatchat and NoBroker are doing their part by saving brokerage and hassles of end user but they surely lack in the number of options that they can offer by getting in touch with the brokers. Hence, the trade off is between saving money vs more number of property options. I believe with more awareness among the owners of property and Internet penetration apps like No-Brokers have a long way to go.
Key problem for end customers in real estate includes the lack of information and transparency. Now startups are trying to present as much authentic information as possible. They have gone to the extent of giving virtual tours of property and sending their own photographers to take property pictures. Still, these companies are facing huge problem with fake listings. Everyday these companies receive thousand of listings, verifying each one of them is a costly and time consuming affair. They are also trying with various technology solutions to scan and filter fake listing. The Company, which will be the first one to do this efficiently, will come out as the winner.