“VCCircle featured a story on July 08, 2019 on How Technology is changing the Real Estate Industry, w ...
Rapid urbanization in the country and migration from rural areas are aspects where real estate will have a big role to play in the future as per the Founder & CEO at SquareYards, Tanuj Shori has opined that there is massive socio-economic evolution taking place at present and real estate is kind of at a crossroads as far as understanding the impact of the same is concerned. He has drawn an interesting parallel between socio-economic scenarios in India today with the scenario in China back in the year 2002.
Urbanization has touched 33% in India at the moment while China already has more than 56% of its regions urbanized. India should be 40% urbanized by the year 2030 and the urban population should go up to a whopping 600 million people in this duration. Increases in income, migration and evolving demographics will put pressure on major cities to offer housing for the surging population. With an increase of 300 million people in urban zones, there will be a demand for approximately 75 million housing units with the average family size pegged at four.
Tanuj Shori has opined that the long development cycle of the real estate business makes it imperative to plan for these rapid changes from now itself. SquareYards is one of the foremost proptech players, having invested in people and technology alike towards ensuring more efficiency. Intuitive technology from SquareYards will always be the preferred pick for people with growth in major cities, increase migration from rural areas and newer homebuyers from the country’s hinterlands. SquareYards is now expanding on its channel partner network while creating products which are future-ready and partnering banks to be ready to help individuals better on every step of the home buying journey, right from searching online to home loan disbursements and shifting into one’s dream home.
Shori has highlighted how SquareYards is a pioneer when it comes to the O2O (Online to Offline) commerce model for customer acquisition and service delivery in real estate. The technology helps solve asymmetry in real estate data via discovery and searches. There is more standardization and comparative analysis of markets. This helps in tapping a bigger audience while digitizing and managing all documentation and scaling up sales at the same time. Proptech, as per Shori, is perceived here as an assisted sales process where products, data, leads, automation and other factors spark the entire value chain with the agent being the delivery conduit for the same.
SquareYards’ network of websites and apps receive more than 1 million visitors in monthly traffic while generating annual real estate leads to the tune of 18 million. Customer meetings are set up by offline channels and buyers are supported while searching for properties and later for setting up the site visits. They are helped with comparing and choosing options and thereafter, the closure of the deal with the builder. Square Capital, the in-house mortgage division, thereafter offers loan advisory and documentation services. After sales, there is a dedicated relationship manager for the client to take care of documentation between the buyer and builder, payments and concierge services.
SquareYards offers zero brokerage real estate transactions with its revenues coming from the real estate developers depending on the inventory being moved by it. Having started its journey in the year 2014, SquareYards has already serviced more than 40,000 homebuyers throughout 25 Indian cities and 10 countries. As of 31st of March, 2019, SquareYards had 70% growth in net revenues and hit $27 million in gross revenue with a GTV (gross transactional value) of $725 million across 12,000 property transactions. SquareYards is already a market leader in several other countries with regard to volumes of business and year-on-year growth metrics. It is now focusing on strengthening its presence in these markets while adding more locations at the same time. SquareYards is close to being one of the few Indian start-ups that have touched $1 billion in gross transactional value (GTV).