Snapdeal partners with Puravankara Projects to sell ready-to-move-in homes on its platform
BENGALURU: Snapdeal, one of India’s largest online marketplace, has partnered with Puravankar Projects, one of the country’s top 5 listed real estate developers, and property consultancy firm JLL India, to sell apartments on its e-commerce platform.
The three-way partnership between Snapdeal, Puravankara Projects and JLL India will enable customers to purchase a ready-to-occupy apartment from Puravankara across Bangalore, Chennai, Coimbatore & Kochi and lease it back Puravankara for a contracted term of 7 years under the Managed Residences Plan.
Ashish Puravankara, Managing Director, Puravankara Projects Ltd said “At Puravankara, we are always striving to meet the evolving needs of home buyers, and the benefits offered under the Managed Residences Plan are in tandem with our Group’s vision. While developers in the past have offered rent assurances for one or two years, it is for the first time a developer has taken a 7 year long term view on rentals. This indicates our bullish view on the long term real estate story in the country”.
The development puts Snapdeal in direct competition with other property-focused online ventures that also sell real estate, such as CommonFloor, 99Acres and MagicBricks. The online platform has managed to sell over hundreds of units across various price segments since the launch of the real estate category in August 2014 with the sale of flats from Tata Value Homes. The real estate category on Snapdeal has comprises of portfolio of residential projects from developers across India like Tata Value Homes, Tata Housing, Godrej Properties and Brigade Enterprises.
Snapdeal spokesperson said, “Snapdeal’s Real estate category has received a phenomenal response from customers since its launch witnessing 300% year on year growth. We are confident that the unique Managed Residences Plan will be an exciting proposition for our customers and help them maximise benefits from their home investment.”
As a part of the contract, Puravankara will secure pre-agreed monthly rentals to the customer and pay the common area maintenance amount to the Building Association. This ensures that the purchaser enjoys a hassle free, uninterrupted rental returns for 7 years, along with an additional rental appreciation benefit of 8.0% every year.
“Purchasers however have an exclusive option for premature withdrawal from the lease agreement, in case they choose to occupy the apartment or manage the rental process themselves,” said Puravankara.
The builder has appointed JLL as the Lease Manager, to assist it in further sub-leasing the residential apartments to tenants and provide leasing related services.? JLL also offers to provide lease management services to the purchasers beyond the 7 year period, in return for a service fee.
Ashwinder Raj Singh, CEO – Residential Services, JLL India said “Buying ready-to-move-in homes rules out uncertainties around quality and possession timelines, as purchasers buy what they see. Simultaneously under this Plan, rental income is guaranteed. We are excited to associate with Puravankara on this one-of-a-kind initiative, and are sure that this offering will appeal to both local and NRI investors.”
Offering 200 ready-to-occupy residential assets in the inaugural phase of its launch across Bangalore, Chennai, Coimbatore and Kochi with investment sizes ranging from Rs 35 lakhs to Rs 3.5 Crores, the bookings for Managed Residences Plan will be open exclusively on Snapdeal for 10 days, starting May 27th and allotment of units will be on a first come first serve basis. An added advantage, people who book online during this inaugural period shall also be eligible to receive an INR 25,000 Snapdeal Purchase Voucher.
It is estimated that the real estate market in the country will reach $180 billion (over Rs 11 lakh crore) by 2020. In just residential property, the top eight Indian cities will see an additional demand of 2.8 million units in the next five years, according to property consultant Cushman & Wakefield.