In the realm of online real estate platforms, the clash between 99acres and MagicBricks has undeniably captured the spotlight, overshadowing their respective achievements in the real estate industry. The ongoing rivalry between these two giants has left potential customers, like myself, perplexed when deciding which platform to choose for property-related endeavors.
Both 99acres and MagicBricks claim to be the best, but what sets them apart? In this article, we aim to present an unbiased evaluation of the 99acres Vs. MagicBricks conflict, shedding light on the strengths and weaknesses of each contender, ultimately helping you determine the victor.
How did 99acres perform?
Let’s begin by examining the performance of 99acres. Throughout this year, the experience of purchasing homes has significantly improved, thanks to open area banks and private players slashing home credit loan costs to a 15-year low. Within this context, 99acres has demonstrated commendable performance and growth.
Before COVID 19
Before the COVID-19 pandemic, the year 2020 witnessed an 80% increase in inquiries compared to the pre-COVID times. Engineers reported a 50 percent recovery in the number of property transactions. However, the resale segment faced challenges, and properties were closing at a discounted rate of 2-5 percent overall.
In metro urban areas, there was a substantial surge in new property launches, with more than 31,000 units being introduced. This represented a significant increase of 4.5 times compared to previous figures, indicating a notable expansion in construction and development activities.
After COVID 19
- 99acres experienced a decline of around 33,000 units in Jul-Sep 2020.
- Apr-Jun 2020 witnessed 2.5 times more sales, accounting for 9,700 units.
- Mumbai and Delhi led other metro cities in terms of sales volume, making up approximately 29% and 22% of total transactions, respectively.
- Property cost estimates remained unchanged across cities, but actual transactions closed at an adjusted price of around 2-5% on average, with offers, discounts, and negotiations in place.
- Chennai and Delhi NCR were the worst affected, facing high demand-supply imbalances.
- Bangalore and Hyderabad stood out as the top markets that maintained prices amid the pandemic and economic downturn due to strong end-user demand and a positive supply-demand scenario.
Following the reopening of business sectors around mid-June, a few developers initiated new projects, while the majority concentrated on completing and selling their ongoing ventures. Nevertheless, homebuyers remained cautious concerning under-construction projects to mitigate risks in their investments. The maximum interest from buyers was observed for ready or nearly completed units.
How did Magicbricks perform?
Amidst the significant changes in daily interactions caused by the Covid-19 pandemic, India’s real estate sector has adapted by focusing on innovative features like video walkthroughs, online rental payments, cashbacks, and rewards to foster growth. Given the severity of the Covid-19 impact on the industry, real estate tech startups need to establish robust foundations to weather the crisis successfully.
One such company is MagicBricks, a real estate listing marketplace owned by Times Internet. As it prepares for the post-Covid world, the company can find some solace in its relatively improved financial performance in the fiscal year ending March 31, 2020 (FY20). Here’s how MagicBricks fared during this period:
- In FY20, MagicBricks recorded a revenue of INR 246.28 Cr, marking a 16% increase from its revenue of INR 213.24 Cr in FY19.
- The company’s expenses rose by 9%, from INR 221.13 Cr to INR 241.81 Cr.
- While the company incurred a loss of INR 7.89 Cr in the previous year, it managed to generate a narrow profit of INR 4.47 Cr in FY20.
- Moreover, with deferred tax listed as an asset and included in EBITDA, the company reported an overall profit of INR 49.63 Cr.
- Costs related to materials consumed, employee benefits, finance expenses, and depreciation, depletion, and amortization witnessed an increase.
- Conversely, expenses related to maintenance, power, travel, and other miscellaneous costs decreased by 9%, from INR 117.92 Cr to INR 107.49 Cr.
Real estate tech companies are focusing on features to bridge the distribution gap, especially for home viewings and documentation. MagicBricks aims to enhance its diversified portfolio with more features and invested in real estate supplies of prominent developers across India for capital appreciation during FY20.
Before this month, the Times Internet-owned company, MagicBricks, significantly expanded its range of services to include various rental solutions, such as tenant contracts, tenant verification, and rent payment options, as part of its expansion in the property services marketplace.
The services for tenant verification and tenant contracts are available at prices starting from INR 499. Additionally, tenants can utilize MagicBricks’ Pay Rent platform to make rent payments to their landlords using credit cards, with the ability to earn reward points, for lease amounts up to INR 45,000, as stated in a press release.
A Brief Overview of Traffic in 99acres Vs. MagicBricks
A brief overview of the traffic comparison between 99acres and MagicBricks reveals the following:
- Monthly visitors: MagicBricks wins
- Average Daily visitors: MagicBricks wins
- Clicks per visitor: MagicBricks wins
- Total Minutes spent on the site by the visitors: 99Acres wins
- Unique visitors: 99acres wins
However, to make a comprehensive decision, several other factors should be considered, such as site accessibility, the total number of customers handled, successful and failed projects, and more.
As of the current month, MagicBricks has successfully surpassed 1 million active property listings, with 58% available for sale and 42% for rent. Additionally, the platform boasts 2.1 lakh exclusive listings posted by individual landlords from over 700 towns and cities.
Ultimately, the choice between 99acres and MagicBricks depends on individual preferences and needs in real estate-related matters, as both platforms have a lot to offer.