People looking to buy a property or take one on rent pay a high brokerage. In Hyderabad alone, the brokerage market is estimated to be Rs 4,000 crore per year, Saurabh Garg, Co-founder and Chief Business Officer of NoBroker.com, tells B Krishna Mohan about Hyderabad market.
Problem being addressed
People shell out nearly a month’s equivalent of rent to the brokers for just establishing a contact with the property owner or the landlord. In markets like Mumbai and Pune, the rents are huge and as a result the brokerage is also huge. In some cases, rent renewals, too, are not spared the brokerage.
We offer a platform for landlords to list their properties. We do not charge any brokerage. However, both the landlords and tenants can opt for a phone relationship manager, who will handle the calls on their behalf, explain about properties and schedule appointments for site visits. This subscription model starts from Rs 3,000 onwards.
The all-India brokerage market is about Rs 1.4 lakh crore. That is a huge amount being spent for just getting a contact. In Hyderabad alone, about Rs 4,000 crore is being paid as brokerage while the actual transaction happens between the two parties — the landlord and the tenant.
The broker’s role ends with just introducing them. We started our operations in 2019 and in one year we saved about Rs 101 crore for the people, which otherwise would have been paid as brokerage.
We started with rentals. Now, we have also added buy and sell properties. The renting, buying or selling is also associated with ancillary services like painting, repairs, packers and moving, interior decoration, rental and legal agreements, sale deeds, loan facilitation and others. We draw our revenues by offering these services.
The Hyderabad market sees a steady demand and a matching supply. Last year, we have seen about three lakh properties listed for rent and for sale. The conversion rate is about ten per cent for buy and sell segment and about 20 per cent for the rental segment.
There are other platforms that are listing properties but brokers are their main customers. We have no revenues coming from brokers as we deal with direct customers.
The rental segment is getting more transparent as many are making online payments. Nobroker also has a payment channel which allows the users to pay rent using credit cards as well. We will now look at driving sales for developers.
We will also explore the property management segment. We have offered Nobrokerhood app for many gated communities to manage visitors’ list, e-commerce deliveries and others from the security point of view.