The volatility in the real estate market is driving real estate portals to focus on other revenue systems. Portals such as Magicbricks, Indiaproperty and QuikrHomes are either streamlining or expanding their non-advertising components for a steady growth in near future.
Currently, ad-listings by builders accounts for nearly 60 per cent of the revenue of these portals but the general sluggishness, demonetisation, RERA and various other factors has impacted this revenue stream. “The number of ads from builders has witnessed some decline due to de-monetization, and general slackness of the entire industry,” says Manish Sinha, Head, QuikrHomes.
Ganesh Vasudevan, CEO of Indiaproperty.com claims that they recognized the need to evolve beyond vanilla ad listings in 2013, and have since built an ecosystem of products and services on both the buy and sell sides of the residential real estate marketplace. “These tools are add-ons to listings and significantly enhance marketing ROI for the developer, and help us garner a larger share of the developers marketing wallet,” adds Vasudevan.
Portals are now taking into account the complete industry cycles while deciding their strategic moves and product mix.
Magicbricks expects the non-advertising component to rise to 20% of their toplines next year. “We have been building several new revenue streams. For instance, we have built a marketing and assisted selling service for property owners. For banks, we have an auction platform plus a home loan business. We are also going deeper into segments such as commercial real estate, PG and rentals. In this sense, we are well diversified in terms of our revenue opportunities,” says Sudhir Pai, CEO, Magicbricks.com.