MagicBricks, top Indian bank tie up
02 Jan 2017
MagicBricks.com, one of the leading sites in the highly competitive online real estate market in India, tied up with the State Bank of India (SBI), the country’s largest bank, to promote builders’ homes on MagicBricks.
About 500 builders with projects rated and approved by SBI will list their sites on MagicBricks. The bank will also offer home loans through MagicBricks. The “Seal the Deal” campaign announced last week will also include joint marketing activities, such as a “mega online property show”.
More than 60 percent of housing sales in India include an online search, according to Sudhir Pai, CEO of MagicBricks.
Rajnish Kumar, MD of the national banking group at SBI, said home-buyers, builders, MagicBricks and the bank will all benefit from the deal.
“The prospective buyers … will have comfort that the project has been rated and approved by SBI. … To our builder partners we are providing a market, and that is being offered through MagicBricks. For the bank, all those who look at the deals being offered by MagicBricks are potential customers,” Kumar told the Times of India. Bennett Coleman & Co. Ltd., parent of the Times of India, is also the parent company of MagicBricks.
MagicBricks.com competes with 99Acres.com, owned by Info Edge (India), CommonFloor, owned by Quikr; PropTiger.com, part-owned by News Corp.; Housing.com, majority-owned by Softbank, and Chennai-based IndiaProperty.
The recent “demonetization” — the Indian government withdrawal of high-denomination currency notes of Rs 500 and Rs 1000 — has had a major negative impact on the realty sector, with property registrations declining by almost 50% in some market segments.
Over the past few years, the Indian online real estate market has attracted investments of more than $250 million, according to Venture Intelligence. Top investors include Helion ventures, Nexus venture Partners, SoftBank Group, Accel India, Horizen Ventures, Qualcomm Ventures and Nirvana Ventures.