Unprecedented innovation in last 6 months; we are beating the global biggies on innovation!
Indian online real estate space has seen unprecedented innovation in the last 6 months. Its great to see that we are doing stuff which even US or Chinese online real estate players are not doing.
I have listed some of my observations below:
1. The biggest move by Indian players is clearly to enable buyers to book an home online. Its like ‘e-commerce for homes’.
Housing launched Slice View
IndiaProperty launched TruView
99acres launched iHome
The large global players?
Zillow and Trulia in US and Soufun (Fang), E-house and Anjuke in China are not doing any of this yet and all of them have billion dollar market caps!
2. Commonfloor launched world’s first virtual reality product for real estate- Commonfloor Retina.
3. 3D walkthroughs of new projects introduced by Indiaproperty, Commonfloor
4. Proptiger started selling discount coupons for new projects during Diwali. These discount coupons enable the buyers to get a larger discount on the sale price of the new project (eg- buy a Rs 20,000 discount coupon and get Rs 2 lacs off on a project). However, I do not see any discount coupons live as of now.
This is something that is already happening in China. E-house sold ~100,000 discount coupons in Q4 2014 alone, worth US$120 mn (implying avg discount coupon~US$1,200= INR 72,000/-). This can be a big potential opportunity in India as well.
5. Every player has redesigned their UX in the last 6–12 months.
6. Also, in general lot of startups are doing new things in this space. Some of the examples are
NestAway– online marketplace for shared accommodations
Zenify– Property management for owners
Nobroker & Grabhouse– Find a house/flatmate without a broker
But challenges still lay ahead…
Unfortunately, the online real estate market size still remains small. Listing fee/advertising model is still a ~300 cr market. If the market does not grow fast, it will be very difficult for all the players to survive.
We are clearly lagging behind on data analytics when compared to the global players. For example- Zillow does a good job with Z-estimates. This is something that I believe will gain more focus over the next 12 months. It will be interesting to see data analytics being leveraged to provide insights/assistance to customers.
[Guest article by Sandeep Reddy. Follow him on twitter @hsrdce.]