Realty portals register up to 12% dip in sales

Written by Mona Mehta | Mumbai, Aug 29 | Updated: Aug 30 2008, 08:27am hrs
Online real estate portals such as People Group's makaan.com and 99acres.com have started witnessing 6% to 12% drop in online purchases of real estate properties since July 2008.

Aditya Verma, VP and business head, makaan.com told FE, Between January to June this year, makaan.com witnessed 22% growth in online purchases. But since July, online purchases have started degrowing at the rate of 18%. This is due to a demand-supply gap for properties, apart from delays in real estate projects.

Currently, 26 million people are looking for properties. 12% of such prospective customers look for properties online. According to Verma, In the next three years, those looking for properties online will increase to 50%. We have set aside a budget of Rs 40 crore, to be spent during the next three years, for expanding our presence online in Tier II and III cities. There are about 3 lakh property brokers in India, of which 60,000 were booked through newspapers.

Competitor 99acres.com witnessed a dip ranging 8-12% in real estate purchases online, according to company sources. 99acres.com has contributed over 60,000 listings across India to the SecondSpaceT Lifestyle Property Network. The real estate portal receives property listings of countries like Canada, the US, Australia and the United Kingdom.

On the other hand, makaan.com has 3 lakh listed properties and sees 10 lakh unique visitors per month.

According to a latest report

released by makaan.com, over 64% of all respondents in Mumbai are open to buying properties anywhere in Mumbai as long as it fits their budget.

Industry experts believe that due to inflationary pressures and delays in real estate projects, the real estate market is expected to see price correction only after three years offline.

Also, the purchase of office space online and through SMS-based products via mobile phones is on the rise, as compared purchase of residential space.