India is definitely one of the most-watched emerging economies, and the primary reason for this meteoric growth is the roll-out of economic reforms, which, by and large, have impacted every strata of the Indian society in a positive manner. Over the last few years, many reforms like Demonetization, Housing For All, Real Estate Regulatory Authority (RERA), Pradhan Mantri Awas Yojana (PMAY), Goods and Service Tax (GST), simplification of financial processes with adoption of Aadhar/India Stack, etc. have been implemented by the Central Government. It is due to these continuous efforts that India’s economy is projected to be the world’s second largest, only behind China by the year 2050 [Source].
This has resulted in an upsurge in the overall middle-class and upper middle-class population and this figure is expected to reach to 200 million by the year 2022 [Source]. The middle class is primarily composed of the working class, who are reshaping the global consumer markets. In the 2018 Budget, there was a huge thrust on the ‘Affordable Housing’ and ‘Smart Cities’ project since adequate and affordable housing, as well as well-planned connectivity, are two factors that boost the overall real-estate sector. The establishment of a dedicated affordable housing fund under the National Housing Bank for priority sector lending will further boost the development of the housing segment, showing the Central Government’s commitment to ‘Housing for All’.
On top of this, the implementation of Real Estate Regulatory Authority (RERA) has elicited a huge sigh of relief from home buyers, since RERA has rules to ensure consumers get possession of their dream home on time and in the state that was mentioned in the Sale Agreement. GST, as well, has been a boon for the sector: Earlier, real-estate developers did not receive input tax credits on convoluted supply chains. Now, they can claim input tax credits, and pass on this benefit to the end customers. In the long-run, these developments will have a positive impact on the real-estate sector.
These have all contributed to the high growth rates seen in the real-estate industry, and there is tremendous interest in investing in plots, flats, villas, etc. However, this enthusiasm is dampened by a reputation for red-tape, opaque processes, delays in project completion, and legal uncertainty. The large ticket size and liquidity discounts have also traditionally meant that the best property deals were enjoyed exclusively by big institutional investors.
One company wants to change all that.
SmartOwner, India’s first and largest online marketplace for real estate investors, aims to make the process of investing in real estate a seamless and streamlined process. It was founded by Silicon Valley entrepreneurs having a considerable amount of experience in the technology and real-estate sectors. In fact, SmartOwner wants to make property investing as simple as investing in Mutual Funds and the Stock Market.
So, what makes SmartOwner different from other players in the market? SmartOwner specializes in giving the savvy investor access to high-value opportunities, which are normally the domain of large financial institutions. It has a very unique business model where they look out for projects from reputed developers, negotiate deep discounts, and pass on those savings to their clients. Since they get involved in the very early stages of a project (ideally at the pre-launch phase) and make bulk purchases, their clients are able to lock in a hefty return the moment they complete their investment.
Before SmartOwner was launched, these type of opportunities were only open to HNIs. With their revolutionary business model, a professional with a good amount of savings can also profit from high-end real estate opportunities. There is a lower barrier to entry on each purchase and investors have options to invest in multiple projects spanning different cities. With this option, investors can manage to have a diversified real-estate investment portfolio, adding depth to their financial portfolio. Unlike other real-estate players, the SmartOwner team assists their investors at each stage, ensuring the investment process is as seamless as possible. Once a client has made an investment and wants to liquidate that asset, the company’s resale division helps to sell the assets at the right time so that the investor is able to make good returns. All these factors make SmartOwner a pioneer in the nascent, yet growing, real-estate crowdfunding market in India. Their stellar work was rewarded when they were ranked among FT’s 100 fastest growing companies in Asia and as the fastest growing FinTech firm in South Asia. Simply put, SmartOwner is a new age fintech company that helps investors make informed decisions in the real-estate sector.
To summarize, SmartOwner has an interesting model that can be leveraged by investors who want to be a part of the India growth story. What according to you are some of the issues faced by individual investors in the property market that SmartOwner could solve; do leave them in the comments section…
